F&O volumes likely to decline 30% on tighter peak margin regulation

A further 20-30 per cent decline in retail derivatives volumes is likely as phase two of peak margin norms kicks in from March 1. Retail participation in the F&O segment — especially that for options writers on expiry days — has already been impacted owing to these norms, which became effective from December 1.

The derivatives turnover on weekly expiry days on the NSE in December in the index futures segment, for instance, came off 41 per cent over the previous month, while that for index options reduced 19 per cent, the data from brokerage Prabhudas Lilladher showed.

Peak margin rules dictate