SEBI F&O Study: Retail Traders Fall 20% After Curbs
Why in the news
SEBI’s latest study on equity derivatives showed that its recent curbs on speculative trading cut individual participation sharply.
Key facts
- Unique traders: down 20%.
- Turnover of individuals: down 11%.
- Largest drop: 30% among traders with under ₹10,000 turnover.
| Measure | Before | After | Change |
|---|---|---|---|
| Unique individual traders | 8.43 million | 6.77 million | -20% |
| Individual turnover | ₹62,700 crore | ₹56,000 crore | -11% |
SEBI measures (since November 2024)
- Bigger contract size for weekly and monthly index derivatives.
- Cap on the number of weekly index derivative listings.
- Upfront premium collection from options buyers made mandatory.
- Calendar spread benefit removed on expiry day.
Why the curbs
They answered worries about retail losses and rising speculative activity.
Exam angle
- F&O = Futures and Options, part of equity derivatives.
- Regulator: SEBI; measures started November 2024.