Sebi has introduced a six-step framework aimed at reducing excessive speculation in futures and options (F&O) trading in India, effective from November 20, 2024.
Key measures include raising the minimum investment requirement for index F&O contracts from Rs 5-10 lakh to Rs 15 lakh, limiting weekly expiries to one per exchange, and imposing upfront collection of option premiums from buyers. Additional regulations include the removal of calendar spread treatment on expiry days, intraday monitoring of position limits, and increased tail risk coverage for short options contracts on expiry days.