CNBC-TV18 had reported citing sources on Tuesday that SEBI may consider linking options leverage to cash positions, and that options positions may be linked to cash positions through a formula.
In response, shares of BSE had ended 5.5% lower on Tuesday at ₹2,490, while those of Angel One also recovered from the lows of the day to end 3.7% lower at ₹2,691. Shares of 360 ONE WAM and CDSL also staged an intraday recovery but ended the session with losses.The proposal to link options and cash exposure may be considered by the SEBI board, sources had said, adding that the regulator may also discuss other steps to curb retail trading in options.
“As ever, SEBI will follow due process including transparent and public consultation around any proposed changes to any regulation or circular,” the SEBI statement added further.SEBI is also considering increasing the volumes in the cash market by allowing shorting using the Stock Lending and Borrowing Mechanism (SLBM), the sources added further.
In case the linking does take place, liquidity in the cash market will increase and conversely decline in the options market. Additionally, it will also reduce excessive speculation and protect retail investors.
SEBI may also consider the proposal to link Options leverage to underlying cash position with its board. It will be crucial to see if the proposal finds a consensus or majority on the board.
A study released by SEBI on Monday evening disclosed that nine out of every 10 retail traders continued to lose money in the Equity Derivatives Market. The net loss made by these investors widened to ₹1.05 lakh crore in financial year 2025, in comparison to the ₹74,000 crore loss registered during financial year 2024. You can read more on that here.
Share of BSE are trading 2.5% higher at ₹2,536, while those of Angel One are trading 1.2% higher at ₹2,726.3. CDSL shares are trading 0.6% higher at ₹1,765.1.
