SEBI's new plan causes a stir! These stocks, including BSE and CDSL, saw a huge decline.

Business News: A possible decision by SEBI, the regulatory body of the Indian stock market, has badly affected many big stocks related to the capital market. Actually, SEBI is considering a plan to end weekly expiry and bring control to option trading. As soon as this news came out, stocks like BSE, CDSL, and Motilal Oswal saw a sharp decline.

Shares from BSE to CDSL fell

The biggest impact of this potential plan of SEBI was on the shares of BSE, which fell by more than 3%. At the same time, the shares of Central Depository Services Limited (CDSL) and Motilal Oswal Financial Services also fell by about 1-1%. The shares of Angel One slipped by about half a percent. This decline is important because all these companies are directly connected to the capital market, and if there is a change in option trading, then their business can be directly affected.

What is in SEBI's consultation paper?

According to media reports, SEBI is going to issue a consultation paper soon, which aims to curb option trading. In a meeting between SEBI and the Finance Ministry, it came to light that weekly expiry is only promoting speculation, which is not beneficial for the economy. SEBI is now considering several options. These include eliminating weekly expiry and making it either bi-monthly or monthly. Apart from this, there is also a plan to increase the margin requirements for option trading and reduce the margin requirements for cash trading.

Apart from this, SEBI is considering another important step in which Securities Transaction Tax (STT) can be increased on option trading, while STT can be reduced to promote cash trading. However, changes related to STT are not possible before the budget in February next year. SEBI will soon issue a discussion paper to discuss this issue, after which its board will take the final decision.

Why were capital market shares affected?

The impact of SEBI's proposed changes is clearly visible on the stocks related to the capital market. If the weekly expiry ends or the terms of option trading become strict, the volume of option trading may decrease. This will reduce the volatility in the market on the day of expiry, which can have a direct impact on the revenue of these companies. SEBI full-time member Anant Narayan said in the CII 11th Capital Markets Conclave held in Kolkata recently that the turnover of index options on the day of expiry sometimes reaches 350 times that of the underlying cash market. He described it as unhealthy for the market and said that long-term F&O trading can improve the quality of the market.

91% of traders are incurring losses

A recent study by SEBI has put forward shocking figures. The net loss of individual traders in Futures and Options (F&O) in FY25 increased by 41% to Rs 105,603 crore from Rs 74,812 crore last year. This also includes transaction costs. According to the study, 91%, i.e., 9 out of 10 traders, are incurring losses in F&O. Despite this, the number of unique individual traders has increased by 24% compared to two years ago, although it has decreased by 20% on an annual basis. Especially the number of traders with turnover less than Rs 1 lakh saw the highest fluctuations.

Disclaimer: This article is for information only and should not be considered as investment advice in any way. India daily suggests its readers and viewers consult their financial advisors before taking any money-related decision.