Small options traders thin out as reforms take effect

Number of some of the bigger investors fell as well, though not at the same pace

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The crackdown on India's options frenzy is showing results, with the participation of small investors who have borne the brunt of derivatives losses falling by half.

Data from the country'slargest stock exchange NSE shows that the number of investors trading with less than ₹10,000 each in index options fell 48% by the end of September from a year earlier.

The number of some of the bigger investors fell as well, though not at the same pace. Investors are categorized based on their share in options premium turnover.

The Securities and Exchange Board of India (Sebi) rolled out a series of steps to cool India's options fever, effective first in November 2024 and then from July this year, after studies showed that the majority of them face steep losses.

The regulator is currently reviewing the impact of the latest steps in July, before it takes any fresh measures. The latest change in retail count is one of the key aspects it will consider while determining the fate of weekly index option expiries, people aware of the matter said.