New Delhi, Feb. 17 -- Proprietary traders, whose cost of capital is set to rise sharply under the banking regulator's new funding directives on capital market exposure, posted a significant increase in market share in the popular index options space.

Their gross market share based on premium turnover jumped by 230 basis points (bps) year-on-year to 49.5% in the nine months through 2025-26, according to data sourced from the country's largest stock exchange, National Stock Exchange of India Ltd (NSE). A basis point is one-hundredth of a percentage point.

Rival bourse BSE doesn't segregate turnover by market participants.

Interestingly, the gross market share of individuals jumped by 380bps to 39.2% in the period. Together, prop traders-...