Archive · 16 Sep 2025
Zerodha CEO on Weekly Options: Regulatory Changes Ahead?
Weekly options are contracts that let people bet on how stock prices will change each week.
They're popular in India because they expire quickly, letting traders make quick bets.
However, regulators worry these options could be too risky for everyday investors.
Nithin Kamath, from the brokerage Zerodha, wonders if these options might be banned or changed.
Trading volumes have already dropped after some changes.
A full ban could significantly impact trading activity.
Kamath suggests solutions but acknowledges regulators could choose a ban, and notes India's risk environment differs from the U.S.
Weekly options are contracts expiring weekly, popular among traders.
Nithin Kamath expressed uncertainty about the future of weekly options.
Regulatory bodies are concerned about risks to retail investors.
Option trading volumes dropped 40% after expiry reductions.
Kamath supports a compromise but acknowledges a full ban is possible.
- Who
- Nithin Kamath, CEO of Zerodha, and regulatory bodies.
- What
- Concerns and potential changes regarding weekly options contracts.
- When
- Unspecified timeframe; recent commentary on the market.
- Where
- India's financial market.
- Why
- Due to regulatory concerns about retail investor risk and market volatility.
- Main Focus
- Future of weekly options contracts in India
- Key Figure
- Nithin Kamath, Zerodha CEO
- Options Popularity
- Increased among traders for hedging and speculation
- Expiry Cycle
- Weekly, expiring every Thursday
- Regulatory Concern
- Potential risks for retail investors
- Trading Volume Drop
- 40% decrease after expiry reductions