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India's Derivatives Trading Faces Double Hit
6 May
Summary
- Indian equity derivatives trading saw a significant slump last month.
- Higher taxes on equity derivatives are impacting trading activity.
- Central bank oversight is also tightening, constraining liquidity.
Trading activity in Indian equity derivatives experienced its sharpest fall last month. This downturn is largely driven by the Indian government's decision to impose higher taxes on equity derivatives.
Compounding this fiscal measure, the nation's central bank has also intensified its oversight of the derivatives market. This dual pressure of increased taxation and stricter regulatory scrutiny is resulting in significantly constrained liquidity conditions for traders.
Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.
