Now Reading: NSE options turnover hits 2026 low on monthly expiry day
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NSE options turnover hits 2026 low on monthly expiry day
Options premium turnover on the National Stock Exchange (NSE) fell to about Rs 67,000 crore on Tuesday, the lowest monthly expiry-day figure this year, exchange data shows. Cash equities volumes also dropped…
Options premium turnover on the National Stock Exchange (NSE) fell to about Rs 67,000 crore on Tuesday, the lowest monthly expiry-day figure this year, exchange data shows. Cash equities volumes also dropped to their lowest since November. The decline reflects stricter Sebi rules, including fewer weekly expiries, larger contract sizes and curbs on bank funding to proprietary traders, plus the new closing-auction system rolled out this month.
The auction, held between 3:15 pm and 3:35 pm for over 200 stocks, has reshaped expiry-day strategies and kept institutional and retail traders largely on the sidelines. The slump comes as NSE prepares for what would be India's biggest IPO. Options transaction charges contributed about Rs 10,000 crore to NSE's revenue last year, making up 60% of its operating income.
"The decline in options volumes is a challenge for NSE ahead of its IPO, but we see this as a short-term hiccup rather than a long-term concern," said Kranthi Bathini, equity strategist at WealthMills Securities. NSE's IPO prospectus awaits Sebi approval.
Indian Opinion Analysis
The Securities and Exchange Board of India (Sebi) began tightening derivatives rules in 2023 to curb retail speculation, moving from a single weekly expiry per exchange to one per benchmark, increasing lot sizes and mandating upfront premium collection. The fresh slump on NSE's monthly expiry day, down to Rs 670 crore in premium turnover, is the first clear market data since the closing-auction system started earlier this month. That auction, meant to prevent last-minute price manipulation, replaces the old volume-weighted average price for 200+ stocks, and traders are still adapting their expiry-day strategies. For NSE, which files for what would be India's biggest IPO, the revenue risk is direct: options transaction charges generate about 60% of its operating revenue, roughly Rs 10,000 crore last year. The exchange's draft red herring prospectus, awaiting Sebi approval, will now face investor questions on whether the volume dip is structural or temporary.
Source: livemint.com
This brief was synthesised by AI from the source linked above.
