F&O Regulations: The Cat’s Out Of The Bag: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Securities and Exchange Board of India has finally announced regulations to curb F&O volumes and strengthen the framework. Most of the measures are similar to the ones announced in the consultation paper released on July 30, 2024. However, one measure from the consultation paper did not find a mention in the final regulation (rationalization of tick size) and two measures came in a relatively better form: Minimum contract size increased to at least Rs 1.5 million versus Rs 2-3 million in two phases in the consultation paper andincrease in extreme loss margin only on the expiry day at 2% versus the 8% cumulative increase on pre-expiry and expiry day in the consultation paper..The regulations will be partially implemented from Nov-24 and, resultantly, the impact on volumes will be visible from Dec-24. Our sensitivity analysis yields nil earnings impact for Angel One Ltd. in FY26 if the order volumes are down 10% versus our assumption of 16% growth and the company is able to increase its realization from Rs 19.7 to Rs 25. We maintain our Buy rating on Angel One. Similarly, for BSE earnings, the hit would be miniscule if the derivative volumes decline by 20% instead of a 22% increase built in our forecasts and the premium to notional turnover ratio increases from 0.072% to 0.09%. We maintain our Neutral rating on BSE..Click on the attachment to read the full report:.Indian Derivatives Volumes May Halve After SEBI F&O Curbs Take Effect.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

F&O Regulations: The Cat’s Out Of The Bag: Motilal Oswal

The regulations will be partially implemented from Nov-24 and, resultantly, the impact on volumes will be visible from Dec-24, adds the brokerage.

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F&O Regulations: The Cat’s Out Of The Bag: Motilal Oswal

The regulations will be partially implemented from Nov-24 and, resultantly, the impact on volumes will be visible from Dec-24, adds the brokerage.

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