“One thing I can categorically say: trading options in India is frightfully expensive compared to other markets (I do both). Trading charges in India eat away returns massively,” Sharma tweeted on Wednesday.
Pointing to a structural issue, Sharma highlighted that the exchanges’ strong profitability is fueled by these high fees. “That goes to SE bottomlines, out of investors’ pockets,” he wrote, referring to near-monopoly exchanges like NSE and BSE in the Indian capital markets.
“Total misuse of monopolistic gift by GOI. I’m clear: Monopolies must have regulated profits. Not unfettered profiteering,” Sharma added.
Notwithstanding this, a Securities and Exchange Board of India (Sebi) study finds that India continues to see a relatively very high level of trading in the Equity Derivatives Segment (EDS), compared to other markets, particularly in index options.
The comment follows the recent report by Securities and Exchange Board of India (Sebi) study that said that nearly 91% of individual traders incurred net loss in the equity derivatives segment (EDS) in FY25 at the aggregate level, similar to the trends observed in FY24. The net losses of individual traders widened by 41% to Rs 1.05 lakh crore in FY25 from Rs 74,812 crore in FY24.On Thursday, even Kotak Mahindra Bank‘s Founder and Director Uday Kotak on Wednesday had highlighted the global market share of Indian in options trading. Kotak said that India’s share in the number of contracts in index and stock options is a staggering 80% of the world.Also Read: India has staggering 80% market share in global index, stock options: Uday Kotak
The Sebi study also said that nearly 91% of individual traders incurred net loss in the equity derivatives segment (EDS) in FY25 at the aggregate level, similar to the trends observed in FY24. The net losses of individual traders widened by 41% to Rs 1.05 lakh crore in FY25 from Rs 74,812 crore in FY24.
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