95% equity F&O traders are professional HNIs: Limaye

Our Bureau Mumbai | Updated on April 03, 2019 Published on April 02, 2019

Eyeing the future: (from right) Nandini Sukumar, CEO, The World Federation of Exchanges (WEF), Urs Ruegsegger, Chairman, SIX Swiss Exchanges and Chairman, WEF, and Vikram Limaye, MD & CEO, NSE, at a press conference to launch ‘The Future of Clearing’ report in Mumbai on Tuesday   -  SHASHIASHIWAL

Clearing the air on retail participation in equity derivatives trading in India, Vikram Limaye, MD & CEO, NSE, said 95 per cent of traders in India’s equity derivatives market are professional high net worth individuals. He was speaking at a press conference arranged for the launch of a report titled ‘Future of Clearing’ by the World Federation of Exchanges (WFE).

Different one

“India’s equity derivatives market is very different from other global peers as it is 100 per cent exchange-traded derivative market compared to high over-the-counter market turnover globally. There is enough transparency and price discovery. Also, 95 per cent of India’s market traders are professional high net worth players.”

Concerns have been raised in the past on how small investors in India were losing money by trading in equity derivatives.

“Also, all equity derivative products traded in India are extremely simple and not hybrid or complex like in other markets. Even margining, compared to worldover, is real time at the client level. Margins have also been tweaked from time to time depending on market conditions.

“So, the risk management is sound. As far as retail investors are concerned 95 per cent of them can fall in the accredited investor category.

“They are not new traders and are professional traders and have certain risk capital,” Limaye said.

The NSE and Singapore Stock Exchange (SGX) have submitted a proposal to SEBI for launching SGX-NSE Nifty contract on Gujarat-based GIFT City platform.

Published on April 02, 2019

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