Retail Options Trading Slump on NSE After SEBI Curbs
Why in the news
Individual investors’ options trading on the NSE has slumped after tougher SEBI rules on speculation.
Key facts
- 30-day rolling average down 77% since November; derivatives traders at a 17-month low in January.
- India was the world’s largest options market before the curbs.
- SEBI limited weekly options and raised lot sizes; its study showed billions in retail losses.
Impact
- Lower volumes, higher option prices and wider bid-ask spreads.
Expert view
- Vivek Sharma (Estee Advisors): past years were abnormal, losses unsustainable, SEBI’s goals largely met.
Exam angle
- SEBI, NSE, lot size, weekly expiries.