Strict rules such as curbing the weekly expiry and increasing the contract value of the index have had a serious impact. SEBI rules, which came into force from December last year, have reduced the volume in options. At the same time, the profits of the broking companies have also suffered injuries. ICRA has released the report regarding the impact of these rules. This shows what has been the effect of strict rules of SEBI.
Impact of strict rules of Sebi
Talking about the impact of SEBI’s strict rules, according to ICRA report, index options volume has declined by 60 per cent. At the same time, average daily premium has seen a decline of 18 percent. The F&O order volume has seen a reduction of 25-30 percent.
Impact on broking sector in Q4
According to the ICRA report report, the strict rules of SEBI have had a profound impact on the broking sector in the fourth quarter. During this period, the net revenue of the broking sector has decreased by 19 per cent. At the same time, the profit has fallen by 26 percent. The strict rules of SEBI have shown a major impact on small investors. Lesses with less than 10,000 turnover have decreased by 49 per cent. At the same time, there has been a reduction of 37 percent on an annual basis in 10,000 to one lakh turnover.
Impact on MTF and Cash Market
The ICRA report said that MTF exposure in December declined by 18 per cent to Rs 86,000 crore. At the same time, it was Rs 71,000 crore in March 2025. Similarly, the cash market turnover has come down by 8 percent to Rs 1.16 lakh crore.
Earthquake of American markets affects the markets around the world, the sentiment will deteriorate if it is selling big – Anuj Singhal
How are the situation now?
ICRA report says that options volumes are getting stable after the initial decline. The focus on long -term contracts is increasing. SEBI’s new rules are expected to reduce betting and fluctuations.