Why India Is Cracking Down on Its Huge Options Market: QuickTake

India has gone from being a small player in the highly speculative equity derivatives market to the world’s largest, all within just five years. Daily turnover in the market – which includes options trading – now sits at about $3 trillion.

The markets regulator has become increasingly concerned about this segment of the market, particularly because of its sudden popularity among inexperienced retail investors chasing quick returns. It has previously warned that these traders could face significant losses when bets go wrong, particularly against larger financial market players.

There are also concerns that some big-sized participants, through the use of ...