INDIA MARKET LENS
◆ Mixed

Prop Shops Pull Back From NSE’s $2 Trillion Derivatives Market

NSE moved higher.

22 Sept 2026 · LiveMint Markets

Proprietary traders’ share of equity derivatives turnover has fallen to the lowest level in almost four years at the National Stock Exchange of India Ltd., as problems with the closing auction mechanism add to an increasingly restrictive trading environment.

Because the driver here is macro rather than company-specific, the read-through is to index-level positioning rather than to any single name — correlations tend to rise when the whole market faces the same signal.

  • With NSE involved, this carries a regulatory dimension that can outlast the immediate market reaction.
  • This is a market-wide development — its reach goes beyond any single stock.