Sebi-proposed F&O trading regulations to hit exchanges, brokers: Reports

Stock exchanges and brokers, catering to retail traders, could be hit hard by the regulator Sebi's proposed measures for Futures & Options (F&O) trading regulations, with market volumes slumping 30-40 per cent, according to reports.

If these measures are implemented, the number of investors could decrease, it added.

Moreover, discount brokers, who depend heavily on retail investors, are expected to be more affected than traditional full-service brokers.

Sebi, in its consultation paper in July, proposed seven measures, including increasing minimum contract size and upfront collection of option premiums, intra-day monitoring of position limits, rationalisation of strike prices, removal of calendar spread benefit on expiry day and increase in near contract expiry margin.

Sebi stated that these measures are aimed at enhancing investor protection and promote market stability in derivative markets.

According to a report by Jefferies, Sebi's proposed measures to reduce the number of .