SEBI's New F&O Trading Framework:
Praveen Dubey (SEBI Registered RA)
SP RESEARCHVIA PVT. LTD. (INH000015808)
SEBI's Focus on Retail Derivatives Protection
With retail volume in options trading surging, SEBI has implemented new guardrails to manage systemic risk and prevent large capital drawdowns. Professional analysts at SP RESEARCHVIA PVT. LTD. unpack these rules.
What are SEBI's new F&O margin and contract sizing rules?
SEBI raised the minimum contract size for derivatives and implemented stricter upfront margin collection rules. This ensures that only well-capitalized traders engage in high-leverage positions, reducing retail exposure to market volatility.
Impact on Sizing and Limits
The revised contract values require traders to adjust their position sizing models. It is highly recommended to rely on defined-risk multi-leg options strategies rather than single naked positions to survive under this new framework.
Written by Praveen Dubey
Chief Research Analyst | SEBI Reg: INH000015808
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