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| Year | 2026 4 Downloads |
| Volume/Issue/Review Month | Volume-XIX | Issue-I | Jan.-Jun. |
| Title | Margins and Retail Dynamics: Assessing SEBI’s Peak Margin Rules in India’s Derivatives Market |
| Authors | Nishtha Agrawal, Dr. Tejabahadur Kannaujiya |
| Broad area | Marketing |
| Abstract | Abstract: The Securities and Exchange Board of India (SEBI) implemented phase-wise peak margin rules from December 2020 to September 2021, with the primary objective of promoting market stability and strengthening the risk management mechanism in the derivatives segment of the Indian capital market. It mandates the collection of margin based on retail investors’ intraday positions by the brokers to avoid the risk occurring due to heavy leverage trading activities. This study examines the effect of the implementation of phase-wise regulatory reforms in margin rules by SEBI on retail investors’ trading activities. The study adopts the method of phase-wise analysis on the participant-wise daily data reports published by the National Stock Exchange from the implementation period, which is December 2020 to September 2021. The findings of the study suggest that the higher margin requirements did not significantly reduce the retail investors’ trading activity. However, a shift from futures trading to options trading that involved low upfront costs was observed. This behaviour change indicated the strategic approach adopted by the retail investors rather than exiting the market. Overall, the findings of the study suggest that the regulatory reforms in peak margin rules by SEBI served their primary objective without undermining the inclusivity of the financial market. |
| Citation | Agrawal, N., & Kannaujiya, T. (2026). Margins and retail dynamics: Assessing SEBI’s peak margin rules in India’s derivatives market. Srusti Management Review, 19(1), 89–104. |
| DOI | https://doi.org/10.63340/SAMT/100000057 |
| File | |
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