Not the time to raise the sail as investors batten down the hatches
Warns Sebi whole-time member Ashwani Bhatia as regulator takes steps to curb frenzy in derivatives segment
Most of the 93 per cent, who rely on their own half-baked strategies or strategies rented from brokers, are sure to lose money in F&O trading
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
The regulator has been under pressure with accusations of a toxic work culture and allegations of conflict of interest against the chairperson
The market regulator had proposed seven key measures to curb retail participation in index futures and options (F&O) to limit losses
A vibrant F&O market enables better price discovery, and participants can hedge more efficiently. In aggregate, traders help generate the volumes, which ensure high liquidity and low spreads
Over Rs 1.8 trillion losses in F&O between FY22 and FY24; 75% continued trading despite consecutive losses
New rules likely to be issued without taking it up with the board
Kacholia said that going forward, a sizeable portion of outperformance may come from SMID space, where earnings are rebounding more quickly and there are still pockets of reasonable value
But derivatives trading turnover thaws, rising as investors warm up to short-term bets
The excitement in the initial public offering (IPO) market is set to continue this week
The proposed changes include limiting weekly options contracts to one index per exchange, higher margin requirements near expiry, and a higher entry point by increasing the contract size
Fewer options strike prices, reducing weekly expiries among steps proposed
Experts believe the market fall seems to be part of routine profit-taking given the sharp 3,000-point rally in the Nifty 50 index post Lok Sabha election outcome.
The recommendations will be taken up for consideration next week, the sources added, declining to be named as they are not authorised to speak to the media
The Reserve Bank of India has been seeking to increase the volume of rupee derivatives traded in the local market relative to offshore, which helps them have more control over the currency
Will be guided by recommendations of expert group
Analysts foresee over two dozen exits and 75 entrants
New framework may displace low-turnover stocks, introduce market heavyweights