High-frequency trading firms in India are paying record sums to attract interns, seeking an edge in a market constrained by tighter regulation on derivatives and a shortage of artificial intelligence-linked stocks.  

Gurugram-based Quadeye is offering interns ₹30 lakh per month, according to people familiar with the matter. It is paying ₹60 lakh for a two-month stint typically offered by high-speed trading firms, a fourfold jump from a year earlier, said people familiar with the matter. 

 The surge in remuneration for interns underscores intensifying demand for quantitative talent — engineers who develop models and build strategies to identify profitable opportunities and execute trades at high speed — as India’s stock market has lost favour with investors. 

 Regulatory curbs aimed at protecting retail investors have also squeezed derivatives volumes.

 The people said Graviton Research Capital LLP’s pay for interns has soared to about ₹50 lakh for a two-month stint, from around ₹16 lakh.

 Among global players, Amsterdam-based IMC Trading BV has doubled its package to ₹50 lakh for interns, while Optiver Holding BV is offering ₹60 lakh, the people said. 

 The compensation is for two-month internships for students from India’s prestigious engineering colleges. That compares with a median annual pay of roughly ₹35 lakh last year for post-graduates from the Indian Institute of Management Ahmedabad, the country’s top business school. 

Quadeye, Graviton, IMC and Optiver did not respond to emails seeking comment.

 “There is increasing aggression from global HFTs to hire straight from campus,” said Daniel Vaz, a partner at recruitment firm Aquis Search. Companies prefer to train young engineers from the ground up rather than recruit them later, he said.

 Tighter Reserve Bank of India rules have impacted derivatives activity. The average daily notional turnover for futures and options listed on the National Stock Exchange, the world’s largest derivatives exchange by trading volume, slumped to a 17-month low in July. 

 A study published by the market regulator in August showed that proprietary trading firms, including HFTs, saw their gross profit drop 3 per cent in the 12 months ended March, from a year earlier.  

Local HFT companies are also expanding into asset classes beyond Indian equity derivatives and overseas markets, further boosting demand for talent. 

 “Global firms are not finding candidates with adequate depth in lateral hiring for junior to mid-level roles,” Vaz said.