SEBI’s New Derivatives Framework To Hit Zerodha Trades By Nearly 30%: CEO Nithin Kamath

SEBI’s New Derivatives Framework To Hit Zerodha Trades By Nearly 30%: CEO Nithin Kamath

SUMMARY

Nithin Kamath said that Zerodha will revisit its pricing structure on the basis of the impact of the new norms on the company, which will come into effect on November 20

This is in line with industry estimates that trading volumes in India's F&O segment could tank by as much as half once the new norms kick in

The new mandates include upfront collection of option premiums, limiting weekly expiry derivatives to just one index per exchange, increasing the minimum contract size to INR 15 Lakh, among others

Zerodha cofounder and CEO Nithin Kamath expects trades on the online broking platform to decline by as much as 30% on account of the Securities and Exchange Board of India’s (SEBI) new derivatives framework. 

In a post on X on Thursday (October 3), Kamath said that the regulator’s new directives, such as one weekly expiry of index derivative per exchange and rise in contract sizes, will also likely impact nearly 60% of “overall” futures and options (F&O) trades.

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