Will there be another derivatives dampener? NSE seems to think so

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Subscribe to enjoy similar stories. India's top stock exchange is on the watchout for fresh measures from the stock market regulator to cool the derivatives frenzy, even as a slew of recent measures begin to take effect. Average daily traded volume (ADTV) in NSE's equity futures segment fell 15% to ₹1,71,825 crore, an NSE presentation for the December quarter showed.

Similarly, ADTV for equity options dropped 7% to ₹61,295 crore. Chief business development officer Sriram Krishnan said the decline partly reflects recent Sebi measures. According to managing director and chief executive officer Ashish Chauhan, the impact of the Sebi measures are hard to estimate since some of them were yet to be implemented, and some more might be announced later on.

Responding to a question about the effects on the weekly Bank Nifty contracts, Chavan said many factors, including the new Sebi regulations, are still settling. "Probably we will come to know if there are no new measures coming out, by May or June," he said. Sebi's measures came after it found that nine out of 10 individual traders lost money in the futures and options (F&O) segment during FY24.

More than 75% of the loss-makers persisted with F&O trading despite making losses in the preceding two consecutive years, a Sebi study found. Experts have previously told Mint that another measure to curb retail participation could be a minimum net worth or income criterion to trade in derivatives. Also read | BSE, NSE contest to hot up under Sebi's eagle eye Dinesh Thakkar, chairman and managing director of Angel One, India's second largest brokerage in terms of clients, said that while regulatory changes often lead to temporary disruptions and volume corrections, history shows that