GENERAL22 Sept 2026
Prop Shops Pull Back From NSE’s $2 Trillion Derivatives Market | Stock Market News
Proprietary traders' share of equity derivatives turnover on the National Stock Exchange fell to 54.7% in August, the lowest in almost four years. New curbs on bank funding for prop trading and a weak closing auction system have made high-turnover strategies costlier. If your firm trades derivatives, expect thinner liquidity and sharper price swings. Watch the market regulator's proposed auction changes and send comments before October 3.
Key Statutory Highlights
- Proprietary traders' share fell to 54.7% of the 193 trillion rupees in notional daily futures and options turnover in August, the lowest since December 2022.
- Their share was about 62% in November 2024, just as the market regulator introduced sweeping curbs to check speculative trading.
- The Securities and Exchange Board of India proposed changes to the closing auction framework on September 12 and has sought public comments by October 3.
Actionable Advice for Taxpayers / Founders:If you run a proprietary desk or trade derivatives often, review how the thinner liquidity and the new closing auction rules affect your strategies, and consider sending your comments to the regulator before October 3 if the proposed changes matter to your business.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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