Street Signs: Derivatives on ice, markets stuck as clarity evaporates, more

Equity markets entered correction territory last week, with the NSE Nifty and broader market indices, Nifty Midcap 100 and Nifty Smallcap 100, declining more than 10 per cent from their all-time highs

Derivatives on ice: Regulatory chill brings temporary slowdown

 

Derivatives volumes are expected to decline this week due to two major changes taking effect. Starting Wednesday, the lot size for all index derivatives contracts will increase from Rs 5 lakh to Rs 15 lakh. Additionally, the weekly expiry will be limited to one benchmark per exchange. Market participants anticipate a one-third reduction in derivatives volumes due to these changes. “The intention is to reduce turnover on the derivatives exchange and discourage uninformed retail investors from entering the market. I expect an immediate 20-30 per cent drop in overall volumes, but this