Key Points
The share of options trading from individual investors has increased from pre-Covid levels of 25-28% to 36% at present..
Options trading has become a cash cow for the National Stock Exchange of India (NSE), which now has a near monopoly in equity F&O trading...
Notably, a recent study by the Sebi showed that the number of individual traders in the equity F&O segment rose 500% to 4.5 million at the end of FY22, from 7.1 lakh during FY19. Whats more, 90% of individual traders in this segment incurred net losses...
CLSA reckons that trading services made up the lions share (more than 75%) of total revenue from operations for NSE in the previous two financial years, against an average of 66% over the past decade...
While world exchanges offer trading services across a number of categories such as equities, bonds, currencies and non-equity derivatives, India is still more of an equity market..
You might be interested in
Gamification of market? Derivatives to cash volumes ratio highest in India
17, Oct, 23Change in contract structure, leverage combined with the ease of onboarding and interface of the new generation trading apps has triggered gamification of this market. As a result, the number of active derivatives traders increased eightfold from less than half a million in 2019 to 4 million. This, in conjunction with sachetization, has attracted a younger demographic as well as clients from Tier II and III cities, the study said.
NSE rolls back 6% charge hike on equity and F&O trading from today
01, Apr, 23This reduction was only partial because there was also a recalibration of contribution to NSE IPFT.
Number of shareholders rise to over 4,300 from 100: 7 mn NSE shares traded in March
25, Apr, 23Share price falls below Rs 3,000 in unlisted market in past year
India’s equity volumes shrink by almost half amid smallcap rout
22, Mar, 24The daily cash trading volume has shrunk to $10 billion from a record $19 billion in early February, with recent sessions account for the bulk of the decline, data compiled by Bloomberg show.
BSNL far behind private telecom firms, even in rural markets
14, Jun, 23If one looks at the last one year, BSNL had a rural market share of over 7% in March 2022 with a subscriber base of about 37 million.
NSE to roll back 6% hike in transaction charges, effective 1 April
24, Mar, 23NSE will cut the transaction fee in cash and derivatives segment on its platform
Brokerages & hedge funds make a killing as India’s inexperienced youth flocks to the equity market
14, May, 24Indians aged 20-30 are trading in options market in droves, but know nothing about it & so keep losing money. If losses mount, it could undo gains India saw in investment culture, analysts fear.
The ‘gamification’ of Indian equities poses macro and market threats
26, Feb, 24India’s staggeringly large retail participation in high-risk derivatives trading calls for the use of risk-curbing disincentives. Here is what should be done.