NSE CEO Ashishkumar Chauhan Proposes Minimum Criteria for F&O Trading Amid Retail Speculation Concerns
Ashishkumar Chauhan, MD and CEO of the National Stock Exchange, has proposed introducing minimum qualifying criteria for participation in the Futures and Options segment, in a move aimed at curbing excessive speculation and protecting small investors.Call for Safeguards in Derivatives Trading
Speaking at the FIA Conference in Mumbai on Friday, Chauhan underlined the growing concern around retail participation in derivatives markets, particularly among lower-income groups. He stated that no developing country can allow its lower-income citizens to lose their money, energy, and resources in speculative activities.Chauhan emphasized the need for structured safeguards, similar to frameworks adopted in countries such as the United States and Singapore, to regulate participation in the high-risk F&O segment.
SEBI Flags High Losses in F&O Segment
The proposal comes against the backdrop of concerns raised by the Securities and Exchange Board of India. The market regulator has pointed out that nearly 90 percent of individual traders in the Futures and Options market incur losses, intensifying the debate around speculative trading and investor protection.Chauhan noted that further regulatory measures from the government, SEBI, and stock exchanges are likely if retail speculation continues at elevated levels.
Recent policy steps have already signaled a tightening stance. The Union Budget increased the Securities Transaction Tax on derivatives in a bid to discourage short-term speculative activity. SEBI has also rolled out additional risk-management norms to strengthen oversight in the derivatives market.
Market Reaction: BSE and Angel One Shares Under Pressure
The regulatory overhang weighed on exchange and brokerage stocks on Friday.Shares of BSE were trading 3 percent lower at ₹2,716. Meanwhile, Angel One declined 4.5 percent to ₹235.5. This marks the second consecutive day of losses for Angel One after its shares began trading adjusted for a 1:10 stock split.
The discussion around stricter entry norms for the Futures and Options segment signals a broader shift toward balancing market growth with investor protection, as authorities seek to address rising concerns over retail participation and sustained trading losses.
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