The Jane Street case has stirred debate, highlighting distortions in India’s equity derivatives market and renewed scrutiny of trading strategies
India’s derivatives turnover is 350 times that of the cash market, underscoring a deep imbalance that draws hedge funds and aggressive traders
Retail interest in F&O is growing, but Sebi data shows over 90% of such traders lost money, totalling more than ₹1 trillion in 2024-25 alone
Expiry-day trading in cheap options tempts retail investors with high leverage, but small price moves can lead to outsized gains or steep losses
Recent curbs have cooled speculation, but more restrictions could weaken the market’s role in hedging, arbitrage, and price discovery
Sebi must continue to educate investors while working to deepen the cash and bond markets to correct structural imbalances in market volumes
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