Equity volumes see strong growth in FY22 despite tightening of margin norms

Equity market volumes registered strong year-on-year (YoY) growth in the financial year 2021-22 (FY22) despite tightening of margin norms.

The equity cash market grew 9 per cent and derivative volumes jumped 2.6 times. “Higher growth of derivatives was accentuated by the introduction of margin norms during the year,” said Ansuman Deb and Ravin Kurwa, analysts at ICICI Securities, in a note.

The so-called peak margin norms got implemented in phases starting December 2020. Between December 2020 and February 2021, traders were supposed to maintain at least 25 per cent of the peak margin. This margin was raised to 50 per cent between