Save Brokerage Upto 60% to 90%

Effect of equity derivative contract size increase on Sep/Oct 2015

Discussion in 'Futures' started by mutualguru, Aug 11, 2016.

  1. mutualguru

    mutualguru Active Member

    Jun 17, 2015
    Likes Received:
    Trophy Points:
    Recently sebi increased the equity derivatives contract from 2 lakhs to 5 lakhs in order to "safeguard the interest of retail investors" and some fellow also started a petition against it Its more than six months and I want to check the effect of this margin increase and how it "safeguarded retail investor".

    I randomly chose three equtiy futures SBIN, CIPLA and IDFC; then downloaded its historicla data. I plotted two years of equity future contracts No of contracts and Open interest against the Date and this is the result.

    SBIN Open interest

    SBIN No of contracts

    CIPLA Open interest

    CIPLA No of contracts

    IDFC Open interest

    IDFC No of contracts

    I am not a statistician so I cant interpret the data properly but the only thing I can see is that there is only a slight decrease in the No of contracts and open interest from sep/oct 2015. The slight decrease is possibly due to the decrease in retail investors.


    SEBI safeguarded the rich to become richer :):p

    I also welcome your interpretation of the data.
    bpr, comm4300, vsaran and 2 others like this.
  2. bpr

    bpr Well-Known Member

    Dec 24, 2009
    Likes Received:
    Trophy Points:
    so close to no impact. More increase may be on the way.
    But they need to reduce margin . margin way too high.
    mutualguru likes this.

Share This Page