Investors boom in index option

Ahmedabad: In the Futures and Options (F&O) sector, the Strict Guidelines of the Indian Board of Securities and Exchange (SEBI) are not working as a barrier for retail investors trading in options, as their business remains at a high level. In fact, it has increased slightly.

According to the National Stock Exchange data, this category was 35.7% in the premium turnover of index options in the financial year ended March 2025, which was 35% in the financial year 2024 and 27% in the pre-Covid financial year 2019.

In the last financial year, the premium turnover of individuals in the National Stock Exchange. 48.46 lakh crore rupees, which is only 0.2% less than FY 24, but 21% higher than the previous year. Turnover in the financial year 2020 only Rs. It was Rs 3.1 lakh crore.

Market sources said that the market regulatory index is monitoring the activities of options and currently considering the possibility of further action. The main concern is that large amounts of investment occur, especially the day of trend expiry.

The revised guidelines for futures and option segment were introduced on November 20, 2024 and implemented in a phased manner by February. In its July 2024 counseling paper, the regulator mentioned that for the financial year 2023-24, 9.2 million unique individuals and ownership companies traded in the index derivative segment of the National Stock Exchange and the total Rs. It incurred a trade deficit of Rs 51,689 crore. Of these, only 1.4 million investors had net profit, which means about 85 out of 100 investors lost money in business.

Subsequently, SEBI took several steps in October due to changes in markets, increase in retail participation, offering short -term index option contracts and increasing volume of speculative business in index derivatives on the day of expiration.

These include advance collection of option premium from option buyers, deleting calendar spread treatment on the end of expiration, inter-day monitoring, contract size for index derivatives, rationalization of weekly index derivative products and increase in tail risk coverage on the end of option.

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Business recorded in index options