look news india
Ahmedabad: Trading volumes in cash and derivatives segments have declined in October after SEBI's strictness and back-to-back warnings. The decline in volumes in the same month in which benchmark indices recorded their biggest monthly decline since March 2020 is a sign that investors have turned cautious.
Average daily trading volume in the cash segment on NSE and BSE fell 12.4 per cent to Rs. It is worth Rs 1.14 lakh crore. This is the lowest level since April. In June Rs. The average daily trading volume in cash has fallen by more than 30 per cent after reaching a high of Rs 1.65 lakh crore.
The decline in cash segment volumes comes after SEBI warned of risks associated with intraday trading. A SEBI study in July showed that 71 percent of intraday trades were loss-making.
Nifty fell 6.22 per cent in October while Nifty Midcap 100 and Small Cap 100 fell 6.7 per cent and 3 per cent respectively. Heavy losses in many stocks led many investors to halt trading activities in the futures and options segment, with the average daily trading volume also falling by 3.5 per cent to Rs. It is worth Rs 518 lakh crore.
Derivatives volumes have declined marginally since the September peak, but are likely to fall by 20 to 30 per cent in the coming months as SEBI's strict rules on derivatives trading come into effect.
Weekly expiry is allowed in a single index on NSE and BSE exchanges from November 20. Both the exchanges have announced closure of weekly derivative contracts of Nifty Bank, Nifty Midcap Select, Nifty Financial Services and BSE Bankex.
Apart from this, the contract size for index derivatives is also tripling. Additionally, advance collection of option premium and intraday monitoring of position limits will be implemented from next year to curb reckless trading in the futures market.
