Proprietary Traders Retreat from NSE Derivatives Market Amid New Rules

Proprietary traders' share of equity derivatives turnover at the National Stock Exchange fell to 54.7% in August, hitting a nearly four-year low.

The decline follows regulatory curbs on weekly contracts, tighter central bank leverage rules, and persistent liquidity struggles with the new closing auction system introduced in August.

The Securities and Exchange Board of India has proposed framework modifications, inviting public comments through October 3 to address market volatility.