Retail merchants misplaced $9.6 billion in fairness derivatives

People in India misplaced 916.85 billion rupees ($9.6 billion) shopping for and promoting fairness futures and choices within the yr ended March, down from 1.1 trillion rupees a yr earlier, the federal government advised lawmakers on Tuesday.

The variety of particular person merchants in fairness derivatives fell to fewer than 7.9 million from 9.8 million a yr earlier, based on a written reply by Minister of State for Finance Pankaj Chaudhary.

The shrinking participation exhibits the affect of the measures taken by the Securities and Change Board of India and policymakers to curb extreme speculative exercise. Over the previous two years, the regulator has raised contract sizes, tightened place limits and launched different safeguards to mood retail participation in choices, whereas the central financial institution final month carried out tighter funding guidelines for proprietary merchants and inventory brokers.

The crackdown is taking a toll. The common every day notional turnover for futures and choices listed on the Nationwide Inventory Change of India Ltd. declined 23% to 214 trillion rupees ($2.2 trillion) in July from June, a 17-month low.