Nithin Kamath explained that the changes could affect 60% of overall F&O trades and around 30% of total orders for Zerodha.

Nithin Kamath believes the full impact will become clearer by November 20, when these rules come into effect. Zerodha may then reconsider its pricing structures depending on how these changes influence trading behaviour and volumes.

Zerodha's Nithin Kamath expects trades on the platform to decline by as much as 30% on account of SEBI's new derivatives framework.

The new rules, which will kick in on November 20, could reduce Zerodha’s volumes by 60% he added. According to a Sebi study, retail traders in the market have shot up from 5.1 million in FY22 to 9.6 million in FY24.

SEBI has formulated a six-step plan to curb retail participation in speculative index derivatives, which may lead to a substantial drop in volumes potentially by 30-40 percent.