SEBI’s crackdown on speculative activity in Futures & Options (F&O) wiped out ₹1.75 lakh crore in market value of BSE and NSE shares.
The move, dubbed an “options lottery detox,” aims to curb risky trades that expose retail investors to heavy losses.
Exchanges had been enjoying high F&O volumes, but the clampdown has sharply reversed that trend.
Still, SEBI’s board is unlikely to end weekly expiries, easing some fears among investors.
Analysts warn that future revenue models for exchanges will take a hit from the shift.
Jefferies estimates BSE’s revenues could drop 20–50% if expiry or margin rules are tightened.
Brokerages like Nuvama may also see profitability squeezed unless they cut costs and improve efficiency.
The reaction shows how deeply derivatives trading is tied to Indian markets and investor sentiment.
Stock prices of exchanges have swung sharply, with traders anxious over margin changes.
This marks a turning point—exchanges must now rethink, diversify, or adjust their business models.