Investec cuts target price for Angel One to Rs 2,500 amid Sebi’s crackdown on F&O

Anticipating a 30% drop in the number of derivatives orders per client for Angel One after the market regulator proposed measures to regulate the F&O segment, global brokerage firm Investec has cut the target price for the stock to Rs 2,500.

Earlier, Investec had set a target price of Rs 3,000 for the broking platform. The global brokerage firm has, however, retained a ‘buy’ rating on the stock.

Investec states that the eventual impact of the guidelines by Sebi is difficult to quantify as there are multiple moving parts, but in a bear case scenario, there could be a chance of a 50% drop in the derivatives order per contract for Angel One.


The stock is expected to remain weak until full clarity on the issue emerges. The company can also hike its prices to Rs 25 per order from the existing Rs 20.

Among all the guidelines proposed by the markets’ regulator, weekly options restriction and an increase in the lot size and margins are likely to have the highest impact on the broking platform.

Also read: Sebi begins crackdown on F&O mess, suggests 7 measures to save retail traders

The cut in the target prices has come after Sebi, while highlighting that 92.5 lakh retail traders and proprietorship firms incurred a trading loss of Rs 51,689 crore in FY24, released a consultation paper on measures to strengthen index derivatives framework for increased investor protection and market stability.

According to market analysts, exchanges and retail-focused brokers will be affected the most from the proposed changes while clearing members like Nuvama (Asset Services business) cater to institutional players (HFTs / FPIs), which are less impacted but may see some second order impact.

Despite a cut in the target prices, the shares of Angel One were trading 3% higher at Rs 2,200 on the BSE around 11:30 am on Wednesday.

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