SEBI F&O Entry Barrier Rules: How New
Praveen Dubey (SEBI Registered RA)
SP RESEARCHVIA PVT. LTD. (INH000015808)
SEBI's New Directives on Futures and Options (F&O)
To curb excessive speculative trading and safeguard retail capital, the Securities and Exchange Board of India (SEBI) has rolled out stricter measures for equity derivatives. As registered market experts at SP RESEARCHVIA PVT. LTD., we detail the compliance barriers and strategic adaptations for retail derivative traders.
What are SEBI's new F&O trading limits and barriers?
SEBI has introduced measures including raising the minimum contract size to ₹15 lakhs, restricting weekly option expiries to one per exchange per week, and mandating upfront collection of option premiums from buyers to prevent intraday leverage misuse.
Core Regulatory Changes
- Increased Contract Sizes: The minimum value of a derivative contract has been increased from ₹5-10 lakhs to ₹15 lakhs to limit entry by low-capital retail participants.
- Weekly Option Limits: Exchanges (NSE and BSE) can now offer weekly expiry contracts for only one benchmark index per exchange, reducing the overall number of active weekly expiries.
- Premium Collection: Stockbrokers must collect 100% upfront premium from option buyers, eliminating any broker-level leverage.
Written by Praveen Dubey
Chief Research Analyst | SEBI Reg: INH000015808
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