NSE CEO Ashishkumar Chauhan pitches for minimum qualifying criteria for derivatives trading

In light of capital markets regulator Sebi's finding that over 90 per cent of of the traders lose money in derivatives trading, the head of the IPO-bound stock exchange said no developing country can allow "lower strata citizens to waste their money, energy and resources on speculation".

Speaking at an event in Mumbai, Chauhan proposed "minimum qualifying criteria" for participating in derivatives in line with similar regulations in Singapore, the US and other countries "so that lower strata people don't participate in the Indian derivatives market and lose money".

Both the government and regulatory bodies have taken numerous measures to curb retail participation in the forward and options segments, aiming to funnel more money into the cash segment.

The government in the 2026-27 Budget raised the securities transaction tax in a bid to dissuade people from speculative trading.

The policy and regulatory measures have impacted volumes in the market. Stock brokers and bourses derive a sizeable proportion of their revenues by executing trades.

Chauhan said the derivatives markets are important for capital formation in a country like India and their need will only go up in the subsequent years as management and transfer of risk assumes importance.

"At the same time, developing country like India cannot allow over speculation by lower strata of economy. Hence, more and more regulations will come from governments, regulators and exchanges to curb over speculation till the time perception of lower strata of the society doing over speculation continues," he stressed.