Sebi implements new rules for equity futures and options starting today

The Securities and Exchange Board of India (Sebi) has implemented new rules for the equity futures and options (F&O) segment starting today, November 20, 2024. These changes aim to enhance market stability and protect retail investors. Key changes include reducing weekly expiries for index derivatives to one per benchmark index and increasing the minimum trading amount for derivatives from Rs 5–10 lakh to Rs 15 lakh. An additional extreme loss margin of 2 percent will also be applied on options expiry days starting February 1, 2025. Brokers must now collect option premiums upfront to limit excessive intraday leverage. Additionally, the practice of calendar spreads for same-day expiries will be eliminated. From April 1, 2025, stock exchanges will monitor position limits for equity index derivatives throughout the trading day.