In the most crucial such exclusion drive in the current beyond, the National Stock Exchange, past due on Monday, said derivatives trading would no longer be allowed in 34 shares after their current month-to-month contracts expire on Jun 28.
“O”t of a universe of 1900 stocks, only 159 will trade in derivatives. This will lessen liquidity and volumes. What will be left to exchange if this maintains” “aid a mid-sized proprietary trader.
NSNSE’slow came as the stocks have failed to meet the Securities and Exchange Board of InIndia’sore desirable eligibility standards for stock derivatives.
In a bid to dissuade retail traders from the derivatives market, SEBI has brought approximately a slew of regulatory modifications, such as physical delivery of futures contracts of an inventory and tighter norms on the net worth. SEBI has been trying hard to alter the Indian derivatives market, which money owed for most if not all of the buying and selling extent on Indian exchanges.
As part of the regulation, SEBI final April issued revised suggestions to determine whether or not an inventory turned into eligible for buying and selling within the derivatives segment. Under the new, stringent hints, F&O securities will need a marketplace-huge position limit of ₹500 crores, up from ₹three hundred crores earlier, and a mean zone sigma order size of ₹25 lakh.