– Sebi has released new consultation papers on futures and options with seven proposals to control retail speculation in derivatives
– If fully implemented, market volumes could decrease by 30-40% and domestic stock exchange earnings could decrease by 15-30%
– Market participants have mixed reactions to the proposals, with concerns about potential severe impact on market volumes
– Some experts suggest implementing changes gradually to prevent significant erosion of derivatives volume
– Experts believe reducing F&O volumes could lead to more stable and less risky market for retail investors
– The measures are expected to promote a healthier trading environment and support sustainable growth in derivatives market
– Retail participation in F&O may decline due to higher costs and stricter regulations, making the market less attractive for smaller investors
– The measures proposed by Sebi aim to control exuberance in the Indian equity derivatives market and protect investors from excessive speculation
– Experts believe there could be rationalization in equity derivatives volumes due to regulatory changes and increased transaction charges