The average daily trading volume (ADTV) for the futures and options segment climbed to a new record high of Rs 537 trillion in September, rising 7.2 per cent on a month-on-month basis. The ADTV for the cash segment, however, fell nearly 4 per cent to Rs 1.3 trillion. The rise in F&O volumes came even as the markets clocked stable performance last month. The benchmark Nifty 50 index rose nearly 4 per cent, while the Nifty Midcap 100 and the Nifty Smallcap 100 indices ended the month little changed in September. Going ahead, however, F&O volumes could fall off the cliff with a slew of regulatory headwinds.
Market regulator Sebi on Wednesday announced measures that raise entry barriers for traders, reduce the number of weekly expiries and require upfront collection of margins. Three out of six measures will come into effect from November 20, two from February 1 and one intraday monitoring of position limits from April 1. In addition, Sebi has revised the stock selection criteria for stocks that qualify for the derivatives segment. The new rules— aimed at ensuring more liquid stocks qualify for the derivatives segment— too are expected to lead to a churn in the 182 stocks that are currently available for F&O trading.
Market regulator Sebi on Wednesday announced measures that raise entry barriers for traders, reduce the number of weekly expiries and require upfront collection of margins. Three out of six measures will come into effect from November 20, two from February 1 and one intraday monitoring of position limits from April 1. In addition, Sebi has revised the stock selection criteria for stocks that qualify for the derivatives segment. The new rules— aimed at ensuring more liquid stocks qualify for the derivatives segment— too are expected to lead to a churn in the 182 stocks that are currently available for F&O trading.