The Sebi-appointed expert group on exchange-traded derivatives started discussions on seven proposals to address regulatory issues and protect small investors from risks in index and stock option trading, sources said. The panel members would recommend short-term strategies to bolster investor protection and improve risk metrics in this market segment, they said. "The expert group would deliberate in detail the pros and cons of each of the seven proposals to protect small investors engaged in futures and options (F&O) trading. We know that nine out of ten small investors lose money in F&O. The recommendations of this group will be considered by the Secondary Market Advisory Committee for a final decision," a source close to the development told PTI. Options are financial contracts that give a holder a right, but not the obligation, to buy or sell an underlying asset at a specified price within a contract period. The proposals included rationalisation or limiting weekly ...