Sebi Announces New F&O Rules

  • Market regulator Sebi has announced a slew of measures to strengthen index derivative framework to protect investors and improve market stability, including reducing expiries to a weekly basis. Each exchange will be allowed to provide derivatives contracts for only one of its benchmark index with weekly expiry.

  • Sebi increased the minimum trading amount for derivatives from Rs 5 lakh to Rs 15 lakh.

  • The new measures for derivative trading will be effective November 20, said Sebi in a circular.

  • Sebi asked exchanges to monitor intraday position limits for equity index derivatives.

  • Starting February 2025, Sebi will enforce upfront collection of options premiums and increased margins. Sebi requires an additional 2% margin for short options contracts on the day they expire.

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