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SEBI study links Sensex non-expiry options volume rise to tighter rules
The BSE expiry to non-expiry premium turnover ratio fell from 20.2 times pre-policy to 3.4 times in the FY26 period reviewed, while non-expiry day ADT jumped to ₹15,667 crore.
LiveMint Markets reports that a Securities and Exchange Board of India study on the equities derivatives segment found a sharp rise in BSE Sensex non-expiry day option volumes after regulatory tightening aimed at curbing retail options trading. The study, titled “profitability of individual traders in the equities derivatives segment FY25-FY26,” analyzed expiry and non-expiry average daily premium turnover across three periods, including pre-policy, immediate post-policy, and October 2025 to March 2026.
According to the study, measures rolled out in phases from November 2024 through March and December 2025 included tripling contract size, rationalizing weekly expiries to one per exchange from multiple earlier expiries, and doubling the tail risk margin on expiry days. The government also raised securities transaction tax on futures and options in October 2024, in addition to the other curbs targeting retail activity.
The study showed BSE expiry day average daily turnover increased 15.2% to ₹25,648 crore in the immediate post-policy period from ₹22,271 crore pre-policy. Non-expiry day ADT surged 528.4% to ₹6,917 crore from ₹1,101 crore, and then rose further to ₹15,667 crore in the third period ending in FY26, based on the study's period comparisons.
LiveMint Markets also reported that the BSE expiry to non-expiry ratio dropped to 3.4 times in the third period from 20.2 times pre-policy, reflecting the shift in turnover mix. The study attributed the Sensex options non-expiry day ADT increase to greater institutional participation, citing market expert Shai Coelho, who said the rise is attributable to institutions.
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