To support my theory: Money outflow from India, inflow to undervalued stocks like China
https://www.reuters.com/world/india...ew-playgrounds-tighter-rules-loom-2024-10-17/
India equity option traders hunt for new playgrounds as tighter rules loom
Millions of Indian retail traders are exploring alternative ways to earn profits ahead of stricter
regulations on trading equity derivatives next month, but their transition is unlikely to be smooth, investors and brokers say.
Derivatives trading in India has boomed in the past few years, with
short-term index options bets pushing up the notional value of options traded on the country's exchanges to the highest globally.
Regulatory data show retail traders contributed to more than a third of volume in the derivatives market, leading the Securities and Exchange Board of India (SEBI) to warn of risks and
reduce the number of contracts offered by exchanges. The
regulator also tripled the minimum trading amount. The new rules go into effect on
Nov. 20.
Zerodha, India's second-largest online brokerage, estimates
trading volumes for equity options are likely to drop about 30% after the new rules kick in.
The new rules "are sufficient enough to make retail traders want to trade less," Faisal Mohammed, vice president of trading operations at Zerodha, said.