The Hindu Business Line

95% equity F&O traders are profession­al HNIs: Limaye


Clearing the air on retail participat­ion in equity derivative­s trading in India, Vikram Limaye, MD & CEO, NSE, said 95 per cent of traders in India’s equity derivative­s market are profession­al high net worth individual­s. He was speaking at a press conference arranged for the launch of a report titled ‘Future of Clearing’ by the World Federation of Exchanges (WFE).

Different one

“India’s equity derivative­s market is very different from other global peers as it is 100 per cent exchange-traded derivative market compared to high over-thecounter market turnover globally. There is enough transparen­cy and price discovery. Also, 95 per cent of India’s market traders are profession­al high net worth players.”

Concerns have been raised in the past on how small investors in India were losing money by trading in equity derivative­s.

“Also, all equity derivative products traded in India are extremely simple and not hybrid or complex like in other markets. Even margining, compared to worldover, is real time at the client level. Margins have also been tweaked from time to time depending on market conditions.

“So, the risk management is sound. As far as retail investors are concerned 95 per cent of them can fall in the accredited investor category.

“They are not new traders and are profession­al traders and have certain risk capital,” Limaye said.

The NSE and Singapore Stock Exchange (SGX) have submitted a proposal to SEBI for launching SGX-NSE Nifty contract on Gujarat-based GIFT City platform.

(from right) Nandini Sukumar, CEO, The World Federation of Exchanges (WEF), Urs Ruegsegger, Chairman, SIX Swiss Exchanges, and Chairman, WEF, and Vikram Limaye, MD & CEO, NSE, at a press conference to launch ‘The Future of Clearing’ report in Mumbai on Tuesday

 ??  ?? Eyeing the future: SHASHIASHI­WAL
Eyeing the future: SHASHIASHI­WAL

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