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Retail Options Trading Slump on NSE After SEBI Curbs

18 March 20251 min read
BANKING & FINANCERetail OptionsTrading Slump onNSE After SEBICurbs18 March 2025safalsetu.com

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.

Test yourself

1. Retail options trading on which exchange fell to a three-year low after SEBI's curbs?

Retail options trading on the National Stock Exchange plunged.

2. Which of these was among SEBI's measures to curb speculative retail trading in options?

SEBI limited weekly options and increased lot sizes.

3. By how much has the 30-day rolling average of retail options contracts fallen since November, according to the notes?

The rolling average is down 77%.