Indian brokerages slip on market regulator's proposals to curb options trading

Dolat Algotech

31/07/2024 05:52

(Adds BSE's share move; updates moves)
    ** Shares of Indian brokerages drop 1%-5%
    ** India's markets regulator proposes raising minimum
trading amount for index options by more than three times,
reducing the number of contracts expiring each week and a rise
in trading margins
    ** Exchanges and retail-focused brokers will be most
impacted, says Jefferies
    ** However, Jefferies says exchange operator BSE  BSEL.NS 
may offset this impact, and may also gain if volumes spill over
from discontinued products to those which are continued
    ** BSE gains 7% after opening 1.5% lower
    ** Angel One  ANGO.NS  fell as much as 2.4% in early trade
before paring all losses to trade 1.7% higher
    ** Investec expects 30% drop in derivatives orders per
client for ANGO; sees it raising prices to 25 rupees per order
from 20 rupees 
    ** SMC Global Securities  SMCG.NS  drops 4.5%, the most
among brokers, followed by Dolat Algotech's  DOLA.NS  2.5% and
Geojit Financial Services'  GEOJ.NS  1.4% decline, respectively


 (Reporting by Kashish Tandon in Bengaluru)
 ((kashish.tandon@thomsonreuters.com))