SEBI INDEX DERIVATIVE RULE
Sebi¡¯s new framework on index derivatives kicks off, first leg live today
Sebi's six-step framework for index derivatives officially began on November 20, with the first leg going live. The new rules impose higher margin requirements for index derivatives expiring on the same day, with a 2% increase in the Extreme Loss Margin (ELM). This marks the start of SEBI¡¯s phased approach to improve risk management and streamline derivatives trading, set for full implementation by April 2025.
Trading in F&Os can't be national pastime: Ashwani Bhatia
"There is a saying uneasy lies the head that wears a crown...We are number one and globally also more than 50 % of the F&O volume happens in India. This is a crown we do not wish to wear," Bhatia said.
F&O cannot be a national pastime, says Sebi member Ashwani Bhatia
Sebi's Ashwani Bhatia said India's F&O volumes are the largest globally, but F&O cannot be a national pastime. Investors should participate in wealth creation through mutual funds or directly. Sebi study highlighted that 93% of individual F&O traders lost money from FY22¨CFY24.
NSE increases lot sizes for all 5 index derivative contracts after Sebi order
The new measure will take effect from November 20, 2024, for all newly introduced index derivatives contracts, including weekly, monthly, quarterly, and half-yearly, according to an NSE circular. The Nifty50 lot size has been increased threefold, from 25 to 75 contracts, while the Nifty Bank lot size has doubled from 15 to 30.
BSE shares tumble 6% on Jefferies¡¯ downgrade to ¡®underperform¡¯ rating
Shares of BSE dropped 6% after Jefferies downgraded the rating to 'underperform' despite hiking the target price. The increased valuation was fueled by market share gain hopes, but Jefferies warned that the risks and over-optimistic assumptions overshadow potential benefits.
Sebi hikes position limits for index F&O
The overall position limits for client and proprietary trades, in index futures and options contracts will be set at ?7,500 crore or 15% of the total open interest or outstanding positions in the market, Sebi said in a circular on Tuesday. This would come into effect immediately.
Sebi raises contract size and limits options to curb retail trading risks
The Securities and Exchange Board of India (Sebi) Tuesday increased the minimum contract size in index derivatives to Rs 15 lakh from the current Rs 5 lakh, making options trading costlier. At the same time, it reduced weekly index product offerings to just one per exchange, seeking to curb frenzied speculation among retail traders.
F&O clampdown: How will Sebi's new rules affect traders and brokers
Sebi has introduced six measures to regulate the derivatives market and curb speculative trading. These include upfront collection of options premiums, intraday monitoring of position limits, and increasing contract sizes. These steps aim to protect retail investors, reduce market volatility, and stabilize trading dynamics between November 2024 and April 2025.
BSE to retain weekly options linked to Sensex after new rules for derivatives: Report
BSE will keep weekly derivative contracts for the Sensex. SEBI has tightened rules, allowing only one weekly options contract from Nov. 20. This follows a rise in retail investors trading options and concerns over household finances. BSE's Sensex has higher volumes than Bankex, thus Sensex will be retained for weekly expiry.
Brokerage stocks 5Paisa Capital and Angel One drop as Sebi tightens rules for derivatives
Shares of Indian brokerages, including 5Paisa Capital and Angel One, dropped after SEBI tightened derivatives trading rules. The regulator reduced the number of weekly options contracts to one per exchange and increased the minimum trading amount, effective Nov. 20. The changes are expected to significantly impact discount brokers and exchanges, according to Jefferies.
Angel One shares in focus after Sebi restrictions on F&O trading
Sebi's new regulations on derivatives trading, including increased contract size and limiting weekly expiries, are expected to impact brokers like Angel One. Effective from November 20, the measures aim to curb speculative trading, following a study revealing significant losses for individual traders in the F&O segment.
For a secure future, Sebi opts for tighter F&O rules
The Securities and Exchange Board of India (Sebi) Tuesday increased the minimum contract size in index derivatives to ?15 lakh from the current ?5 lakh, making options trading costlier. At the same time, it reduced weekly index product offerings to just one per exchange, seeking to curb frenzied speculation among retail traders.
Sebi raises contract size for index derivatives to Rs 15 lakh, effective from Nov 20
To account for market growth, Sebi is raising the minimum contract size for index futures and options to Rs 15 lakh from the current Rs 5-10 lakh range. This change reflects the threefold increase in market values since the limit was last set in 2015.
Nifty or Nifty Bank? Each exchange can offer only 1 weekly options expiry from November 20
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.
Sebi board approves 'light-touch' rules for passive mutual funds
Passively managed MF schemes replicate an underlying index like ETFs and index funds where portfolios of index funds can be easily tracked.
Sebi to tighten derivatives rules despite investor pushback
Sebi Derivatives Rules: The Securities and Exchange Board of India (SEBI) plans to restrict options contract expiries to one per exchange each week and nearly triple the minimum trading amount, sources said. These new regulations, similar to those proposed in July, come despite resistance from traders and brokers
3 Adani Group stocks eligible for inclusion after Sebi's F&O entry, exit norms' revision
Adani Green Energy, Adani Energy Solutions, and Adani Total Gas are eligible for entry into the derivatives segment. Nuvama estimates these stocks may enter the F&O market, with SEBI's final decision pending.
IRFC, IREDA, SJVN among 19 PSU stocks that qualify for F&O entry post Sebi rule revision
Under new F&O norms, 19 PSU stocks, including IRFC, RVNL, and NHPC, are eligible for inclusion. The final decision rests with SEBI. Nuvama's estimates highlight potential entries into the F&O segment based on updated criteria.
View: Sebi's measures to curtail speculative trading in the index derivatives segment
Late last month, Sebi proposed measures to address the rise in speculative trading in index derivatives, driven by a surge in individual investor activity. Concerns have been raised about the exponential increase in futures and options (F&O) trading volumes, which are now 400 times those in the cash market in India, compared to 5-15 times in most other markets.
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