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F&O volumes likely to decline 30% on tighter peak margin regulation

Retail participation in the F&O segment - especially that for options writers on expiry days - has already been impacted owing to these norms, which became effective from December 1

Topics
F&O | F&O stock | stock market trading

Ashley Coutinho  |  Mumbai 

retail investors, funds, F&O, STOCK market trading
Peak margin rules dictate a short-margin penalty — ranging from 0.5-5 per cent of the shortfall per day — if brokers fail to secure the minimum margin for intraday positions | Illustration: Binay Sinha

A further 20-30 per cent decline in retail derivatives volumes is likely as phase two of peak margin norms kicks in from March 1. Retail participation in the segment — especially that for options writers on expiry days — has already been impacted owing to these norms, which became effective from December 1.

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First Published: Mon, February 22 2021. 22:21 IST
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