MUMBAI, Oct 17 Reuters Millions of Indian retail traders are exploring alternative ways to earn profits ahead of stricter regulations on trading equity derivatives next month, but their transition is unlikely to be smooth, investors and brokers say.

Derivatives trading in India has boomed in the past few years, with shortterm index options bets pushing up the notional value of options traded on the country39;s exchanges to the highest globally.

Regulatory data show retail traders contributed to more than a third of volume in the derivatives market, leading the Securities and Exchange Board of India SEBI to warn of risks and reduce the number of contracts offered by exchanges. The regulator also tripled the minimum trading amount.

The new rules go into effect on Nov. 20.

Commodity derivatives, foreign exchange and intraday equity bets, alongside holding options contracts for longer, are some alternatives traders could tap, according to nine retail traders and top brokerages Reuters spoke to.

Zerodha, India39;s secondlargest online brokerage, estimates trading volumes for equity options are likely to drop about 30 after the new rules kick in.

The new rules are sufficient enough to make retail traders want to trade less, Faisal Mohammed, vice president of trading operations at Zerodha, said.

He expects intraday equity trading to pick up and reckons that the commodity side may increase too.

For Saurav Samant, 26, trading options was a way out of his job in the…