Shares of Angel One Ltd. fell nearly 3% on Thursday, trading at ₹2,639 on the NSE, after comments from SEBI Chairman Tuhin Kanta Pandey triggered weakness across brokerages and market-linked stocks.
Pandey, speaking at an industry event in Mumbai, said the market regulator is exploring ways to increase the tenure and maturity of equity derivative contracts. The move aims to bring greater stability and limit speculative activity in a segment that has seen a sharp surge in retail participation.
Over the past two years, derivatives trading volumes have ballooned, with retail investors playing a major role. SEBI has already introduced measures such as limiting contract expiries and raising lot sizes, effectively making speculative trades more expensive. Thursday’s remarks indicate a possible tightening of the framework further, which spooked investors in market intermediaries and brokers.
Angel One, one of the largest retail brokerages in India, derives a significant share of revenues from active client trading in derivatives. Any regulatory move impacting contract liquidity or trading costs could directly affect its business growth.
Despite the decline, Angel One remains well above its 52-week low of ₹1,941, but investors will be closely tracking SEBI’s next steps as regulatory clarity could determine the trajectory for brokerages in the coming months.
