Amidst the turmoil in the domestic stock market, new rules have come into effect in the market from this week, due to which the tension of retail investors has increased. In particular, these changes will have an impact on the trading volumes of the F&O market. Experts believe that this could lead to a decline of 10 to 30 percent in the volumes of F&O trading.
In the derivatives market, earlier the expiry of the index used to be in different weeks, the rule of which has now been changed. According to the new rule, now only two indices Nifty and Sensex will expire in a week. Earlier, the expiry of Bankex was on Monday, Fin Nifty on Tuesday, Bank Nifty on Wednesday, Nifty on Thursday and Sensex on Friday.
There will be a decrease in trading volume
According to experts, now trading in the F&O market will be affected. Because the indexes used to expire within a week. The new rules will expire at the end of the month. Due to this, retail investors used to trade when the premium was low. Their numbers will decrease and experts believe that this could lead to a 10 to 30 percent decline in trading volumes.
Contract value will be affected
Due to the implementation of these new rules on the market, the minimum contract value of the index has increased. The value which was earlier Rs 5 to 10 lakh, has now become Rs 15 lakh. This will directly impact those investors who had entered the market earlier due to low value. Now it will become difficult for them.
Lot size has also been increased
Under the new rules, the lot size for Nifty is being increased from 25 to 75 and the lot size for Bank Nifty has been increased from 15 to 30. Due to this change, it may become difficult for small investors with less capital to trade in the market.