Derivatives are not for low-ticket retail traders, Sebi move will shift them to direct equities: Nooresh Merani

SEBI’s new rules aim to curtail the F&O trading frenzy by increasing margin requirements and reducing the frequency of contract expiries. This measure is expected to lower trading volumes, particularly affecting brokers and exchange companies, while potentially shifting retail traders towards direct equities. The changes target the dominance of low-margin retail clients in options trading. SEBI’s new rules aim to curtail the F&O trading frenzy by increasing margin requirements and reducing the frequency of contract expiries. This measure is expected to lower trading volumes, particularly affecting brokers and exchange companies, while potentially shifting retail traders towards direct equities. The changes target the dominance of low-margin retail clients in options trading.  Economic Times