In the financial year 2025–26 (FY26), domestic equity trading activity moderated significantly, with cash market turnover declining 6% year-on-year to ₹1.13 trillion, down from ₹1.21 trillion in FY25. The futures and options (F&O) segment saw a modest 4.6% growth, reaching ₹447 trillion in average daily turnover. However, the National Stock Exchange (NSE) reported an 18% decline in F&O turnover, reflecting strains in trading activity due to regulatory tightening and poor market performance, with the Nifty50 and Sensex indices falling 5.1% and 7.1%, respectively. Regulatory changes over the past 18 months, such as stricter margin requirements and a new weekly expiry framework, have dampened participation in derivatives trading. Despite the overall decline in volumes, average trade sizes increased, suggesting a trend towards higher-value transactions. For instance, the average trade size on the NSE rose to ₹31,545, up from ₹29,046, while the BSE saw an increase to ₹22,822 from ₹18,720. The BSE also gained market share, increasing from 38% in September 2025 to 44% in March 2026. Looking ahead, the Reserve Bank of India (RBI) is set to implement new norms on bank guarantees, which could tighten leverage and potentially reduce derivatives volumes by 8-10%. Additionally, an increase in securities transaction tax (STT) on derivatives could further shift trading patterns, particularly affecting futures trading costs.