SEBI’s new rules could impact 60% of F&O trades, says Zerodha's Nithin Kamath - YourStory
18 October 2024
Zerodha co-founder Nithin Kamath said that SEBI’s recent move to limit weekly expiries could impact about 60% of overall F&O trades. Given that many traders prefer weekly contracts for their liquidity and shorter time horizons, some might be hesitant to switch to monthly contracts, which could slow trading volumes. Kamath anticipates that this could result in a 30% reduction in Zerodha’s overall order volume. Kamath believes the full impact will become clearer by November 20, when these rules come into effect. Zerodha may then reconsider its pricing structures depending on how these changes influence trading behaviour and volumes, he added in a post on X.
Zerodha co-founder Nithin Kamath said that SEBI’s recent move to limit weekly expiries could impact about 60% of overall F&O trades. Given that many traders prefer weekly contracts for their liquidity and shorter time horizons, some might be hesitant to switch to monthly contracts, which could slow trading volumes. Kamath anticipates that this could result in a 30% reduction in Zerodha’s overall order volume. Kamath believes the full impact will become clearer by November 20, when these rules come into effect. Zerodha may then reconsider its pricing structures depending on how these changes influence trading behaviour and volumes, he added in a post on X.
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