SEBI is set to introduce changes to Futures and Options (F&O) trading to curb speculative practices and enhance market stability.
Recent data revealed a surge in F&O trading volumes, with turnover reaching ₹9,504 lakh crore in May 2024. However, between FY 19 and FY 22, most individual traders in the F&O segment faced losses, averaging ₹1.1 lakh per trader in FY 22. To address these issues, SEBI plans to restrict F&O trading to the top 500 companies by market cap and liquidity, impose a ₹1,500 crore cap on individual stock bets, and set stricter criteria for stock inclusion and removal. These measures aim to reduce speculation, improve liquidity, and make the market more reliable for investors.