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

On Tuesday, Sebi introduced a stricter framework for equity index derivatives, including an increase in the minimum contract size, upfront collection of option premiums, and intra-day monitoring of position limits.

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

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.

SEBI announced new measures for the Futures and Options (F&O) trading. The measures have been announced in a bid to enhance investor protection. The new rules will come into effect in a graded manner beginning from November 20.

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.