Shares of Angel One Ltd. dropped sharply by 5.78% to ₹2,633.00, down ₹161.40 in today’s trade, after reports that the Securities and Exchange Board of India (SEBI) may introduce stricter rules for retail trading in equity derivatives. The stock, which closed at ₹2,794.40 in the previous session, touched a day’s low of ₹2,611.80.
At around 11:35 AM on July 8, Angel One was among the top losers on NSE, with its market capitalization falling to ₹238.37 billion. The stock’s trading range during the session was between ₹2,611.80 and ₹2,793.70, with over 1.05 million shares changing hands.
The sell-off came after a CNBC-TV18 report suggested SEBI could soon link options market exposure to traders’ cash market positions through a prescribed formula. This potential move aims to curb excessive speculation and protect retail investors by ensuring they maintain adequate backing in cash markets.
Other proposals reportedly under discussion include increasing cash market liquidity through stock lending and borrowing mechanisms and addressing retail investors’ growing losses in derivatives. Linking options to cash positions could lead to a dip in options volumes and affect brokerages and exchanges such as Angel One, BSE, MCX, and Nuvama.
Analysts noted that while this regulatory step may improve overall market stability, it poses a negative near-term sentiment for companies dependent on high derivatives turnover. The capital market remains heavily regulated, and changes in rules can significantly impact business volumes and earnings for intermediaries.
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