The MD and CEO said BSE had gained market share when the expiry was on Friday, and the purpose of the contracts has to be to bring efficiency in the options market and not turn it into an expiry day product.
Unwinding of short positions by foreign institutional investors (FIIs), coupled with aggressive long bets by domestic institutional investors (DIIs) led to a sharp rise in the indices, said one derivatives expert.
Industry feedback has suggested a phased implementation of the new measures to ease the transition and avoid sudden increases in entry costs. There have also been calls for qualification criteria for traders to ensure more informed participation.
Within the cash segment, volume is noticeable in smaller stocks as money is being poured into this segment by both retail investors and mutual funds
The regulator’s move is against the principles of free markets and can disrupt the nascent agro-commodity market in India.
The overall damage can be large resulting in losses of some of the global banks up to the extent of $10-50 billion, says Gupta. India has one of the most stringent risk management and margin requirement norms in the world for trading in equity derivatives.
Since defensives have been performing well because of which the Nifty outperformed the Bank Nifty, positional traders, depending on their orientation, should check-in the index accordingly, says Bhamre.
Once a minor irritant, now the Maharashtra government has proposed to double stamp duty on equity transactions. Deena Mehta, MD, Asit C Mehta Investments and Dinesh Thakkar, Chairman & Managing Director, Angel Broking, debated on this topic with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee.