Stricter F&O trading rules: NSE's loss likely to be GIFT City's gain

Stricter F&O rules could lead a shift in volumes, says NSE CEO

Stricter trading rules for the futures and options (F&O) segment could lead to a shift in volumes to the “offshore” GIFT City in Gujarat, a top exchange official said. 

“GIFT City may become the beneficiary of the trading volumes going down in the Indian jurisdiction if Sebi’s proposals are implemented,” said Ashishkumar Chauhan, managing director and chief executive officer (MD & CEO), NSE in the earnings call on Thursday. 

The market regulator has proposed seven key measures to curb retail participation in the derivatives segment. These include higher entry barriers and fewer weekly expiries of index derivatives.