Ahmedabad: The restrictions taken by SEBI to curb speculative trading in the Indian stock market and especially the futures market and reduce retail participation in this sector are having a wide-ranging impact. Average daily turnover (ADTV) in the equity derivatives segment fell to a 16-month low in December.
Not only did futures market trading decline, but on the other hand the cash segment trading, which had been falling for five consecutive months, increased by 4.4 per cent month-on-month in December. In the month of December, ADTV in futures and options segment on BSE and NSE fell to Rs. 280 lakh crore, which is the lowest since August 2023. The average trade has been 36.56 percent less as compared to November 2024.
The most important thing is that if we compare the volume of December with the figure of September, there has been a sharp decline of 48 percent, that is, it has halved. Index futures trading fell for the second consecutive month, while stock futures, index options and stock options fell for the third consecutive month.
What is worth noting here is that to protect retail traders from increasing adventurism and mounting losses, SEBI has reduced the size of contracts, increased margins and reduced the number of products traded.
Apart from this, due to uncertainty at the global level and high volatility in the domestic market, traders adopted a cautious approach and due to this the participation in the derivatives market reduced. Interestingly, the weekly derivatives expiry has stopped from New Year i.e. today 1st January and the contract size has increased which may further reduce the trading volume in future.
On the other hand, cash market turnover increased on a monthly basis in December, driven by a plethora of IPOs and their impressive listings leading to increased investor interest and same-day settlement regulation going to be implemented in the top 500 stocks from January 31, 2025. , Therefore the market environment has also become positive.
