BSE Shares -BSE, Angel One, CDSL Shares Rebound After SEBI Quells Leverage Link Fears

After a stormy Tuesday rattled by speculative reports of regulatory changes, capital market-linked BSE Shares found solid ground again. BSE Shares BSE, Angel One, and Central Depository Services Ltd. (CDSL) bounced back on Wednesday, buoyed by a clarifying statement from the Securities and Exchange Board of India (SEBI) that quelled fears over imminent restrictions on options leverage.

📢 SEBI’s Clear Stand on Leverage Rules
In a post on platform X, SEBI firmly denied any immediate plan to link derivatives leverage to cash market positions:

“Apropos reports in some sections of media around supposed proposals to link option leverage limits to cash positions, it is clarified that no such proposal is currently under consideration,” the regulator stated.
“As ever, SEBI will follow due process including transparent and public consultation around any proposed changes to any regulation or circular.”

Apropos reports in some sections of media around supposed proposals to link option leverage limits to cash positions, it is clarified that no such proposal is currently under consideration.

As ever, SEBI will follow due process including transparent and public consultation…

— SecuritiesandExchangeBoardofIndia (@SEBI_updates) July 8, 2025

📊 BSE Shares Market Rebound: Sentiment Reverses

The reassurance worked. BSE Shares that had tumbled on Tuesday staged a measured comeback:

• BSE shares gained 2.5%, closing at ₹2,536
• Angel One rose 1.2%, ending at ₹2,726.3
• CDSL edged up 0.6%, settling at ₹1,765.1

This bounce helped offset Tuesday’s sharp losses when BSE share tanked 5.5%, Angel One fell 3.7%, and CDSL also slipped amid market jitters.

🔍 The Rumour That Shook the Street
The volatility was triggered by a media report claiming SEBI was mulling a policy that would tie derivatives exposure to cash market holdings. Such a move, while potentially protective for retail investors, raised concerns of reduced liquidity and leverage for brokers and traders alike.

Had it been implemented, the policy could:

• Encourage more trading in cash equities
• Reduce high-risk leveraged positions in options
• Safeguard retail participants from speculative excesses

📉 Retail Derivatives Losses: The Underlying Concern
SEBI’s recent FY25 report found that 91% of retail investors lost money in equity derivatives, with cumulative net losses ballooning to ₹1.05 lakh crore—a significant jump from ₹74,000 crore in FY24. These figures underscore the regulator’s ongoing scrutiny of retail risk-taking in India’s booming derivatives market.

🧭 Looking Ahead: Regulatory Watch Continues
While SEBI has confirmed that no leverage policy change is on the table now, the topic may still come up at board-level discussions, along with proposals to:

• Expand the Stock Lending and Borrowing Mechanism (SLBM)
• Improve transparency in high-frequency and algo trading
• Introduce risk-based margins for retail options trading

💬 Industry Insight: Trust in Transparency
The episode serves as a reminder of the stock market’s sensitivity to regulatory cues. While SEBI’s swift clarification helped stabilise sentiment, brokers, traders, and investors will be watching closely for any future moves regarding retail participation in the derivatives segment.

SEBI’s Investor Certification Program: Empowering Financial Literacy and Informed Decision-Making in the Indian Securities Market – A Major Step Towards Financial Inclusivity