Now Reading: Sebi curbs slash F&O volumes by over 50% in FY26
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Sebi curbs slash F&O volumes by over 50% in FY26
Options contract volumes on Indian bourses fell 51.5% in FY26 after the Securities and Exchange Board of India tightened rules to curb retail speculation, according to its annual report. Futures volumes also…
The Story in Brief
Options contract volumes on Indian bourses fell 51.5% in FY26 after the Securities and Exchange Board of India tightened rules to curb retail speculation, according to its annual report. Futures volumes also dropped nearly 18%. The regulator said the decline followed measures such as higher contract sizes and mandatory upfront premium collection.
Separately, foreign portfolio investors pumped Rs 12,921 crore into Indian equities in the first week of August, sustaining a buying streak that began in July. However, for FY26 as a whole, FPIs remain net sellers at Rs 2.4 lakh crore, already surpassing last year’s outflow. CDSL data showed FPIs had withdrawn Rs 1.2 lakh crore in March alone before reversing course.
The Indian Opinion
The Sebi report confirms that regulatory tightening works, but the numbers also reveal a deeper truth: India’s equity market is still heavily dependent on foreign flows. Celebrating the FPI buying spree as a vote of confidence is premature when net outflows for the year remain a record Rs 2.4 lakh crore. The real test will come when global liquidity tightens again. Will domestic investors fill the gap, or will the market remain hostage to external sentiment?
Sources (2): timesofindia.indiatimes.com, timesofindia.indiatimes.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
