Posted 11/13/2023, 1:21:06 AM
India's Booming Options Trading Stokes Regulatory Fears of Retail Investor Risks
- Sudden explosive growth in stock options trading in India this year has regulators worried about risks.
- Exchanges changed some options contracts to facilitate quicker, cheaper bets as online platforms mushroomed.
- Ratio of derivatives to cash trading highest in the world; activity more speculative than hedging.
- Regulators so far not curtailed trading but issued warnings; historic examples of retail investors hurt.
- Dozens of digital trading platforms becoming top brokers as fintech boom drives robo-trading.