Sebi move to curb F&O trading may make market shallow, see return of ‘dabba’ trading Ajay Bagga

Ajay Bagga explained that reducing F&O market volumes would increase genuine hedging costs and complexity, thereby reducing volumes and making markets shallower. Small traders might shift to penny stocks, while some may engage in risky dabba trading. SEBI aims to curtail retail activity in F&O trades, but this may temporarily impact market depth and liquidity.