SEBI proposes new F&O trading regulations to enhance investor protection, potentially reducing market volumes and affecting discount brokers.

Indian securities market regulator SEBI proposes new F&O trading regulations to enhance investor protection and improve market stability. These measures could cause stock exchanges and brokers' market volumes to drop 30-40%. Key proposed changes include increasing minimum contract size, upfront premium collection, monitoring position limits, and adjusting strike prices. Discount brokers, relying on retail investors, may be disproportionately affected, with NSE's earnings potentially reduced by 25-30% and BSE's by 15-18%.

August 11, 2024
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