Trading volumes not back to their peak, green shoots emerging: Gaurav Seth

Sebi's tighter derivative norms initially hit F&O trading volumes but confidence, new strategies and improved market sentiment are now aiding a gradual recovery, says Seth

The Securities and Exchange Board of India’s (Sebi’s) tightening of the derivatives framework has dented trading volumes, but the industry is gradually adapting to the new regime, Gaurav Seth, chief executive officer (CEO) and managing director (MD) of 5paisa Capital, told Samie Modak, in an interview in Mumbai. Edited excerpts: 

There has been a decline in trading volumes compared to last year. What are the key reasons behind this moderation? 

Market regulator Sebi’s October moves — a part of the broader push to curb speculation and strengthen stability in the equity derivatives segment — is one of the biggest factors