SEBI Tuesday unveiled rules to curtail retail participation in derivatives market. Options premia to be collected upfront from options buyer effective 1 Feb 2025.

Sebi has raised barriers for equity derivatives trading, lowering weekly options contracts to one and increasing minimum trading amounts significantly.

Tough measures include hike in futures and options contract size, need for buyers to make upfront option premium payment, and letting each exchange provide contract for only one benchmark index with w

With the introduction of these rules, the landscape of equity derivatives trading in India is set to undergo notable changes, particularly for retail participants.

Market regulator Sebi has tightened the derivative norms by rationalising the weekly expiry contracts for the options segment. Under the new rules, exchanges can offer expiry contracts for only one index.