Sebi's P-note derivative ban fails to dent Indian futures market volumes

Average daily F&O turnover has increased 20 per cent despite curbs imposed by Sebi six months ago

It has been six months since market regulator Securities and Exchange Board of India’s (Sebi’s) diktat of not allowing participatory notes (p-notes) to take unhedged positions in Indian derivative markets took effect. Contrary to industry concerns at the time the decision was taken, however, the volumes in Indian futures market have only increased since August 2017.

According to data compiled from stock exchanges, the average daily turnover of Indian derivative markets increased 20 per cent to Rs 84.3 billion in February 2018 billion from Rs 70 billion in August.

Market participants say, while there was some initial knee-jerk reaction due