Archive · 2 Jun 2025
SEBI Unveils New Rules to Strengthen F&O Risk Management
SEBI, the market regulator, is making changes to how people trade in the stock market's F&O (Futures & Options) segment to make it safer.
They're changing how they measure risk by using something called FutEq OI, which looks at how much prices could change.
They're also linking how much can be traded to how much money is actually being used in the market.
Also, limits on the money allowed for trading have been increased, but exchanges will monitor trading very closely.
There are also new rules for specific stocks and indexes to make sure the market stays fair and doesn't get too risky.
Overall, these changes aim to help investors and prevent market manipulation.
SEBI introduced new measures for the equity Futures & Options (F&O) segment.
Open interest will be measured by Future Equivalent (FutEq) OI, giving a better risk picture.
Market-wide position limit (MWPL) will be linked to cash volume and free float.
Index Options position limits enhanced to Rs 1,500 crore (net) and Rs 10,000 crore (gross).
New eligibility criteria fixed for derivatives on non-benchmark indices.
- Who
- Securities and Exchange Board of India (SEBI)
- What
- SEBI issued new measures for the equity Futures & Options (F&O) segment.
- When
- Various measures to be effective between July 1, 2025 and December 6, 2025.
- Where
- India
- Why
- To strengthen risk monitoring and enhance trading convenience.
- Regulator
- SEBI
- Focus
- Equity F&O Segment
- New Open Interest Measurement
- FutEq OI
- Implementation Dates
- July 1 to Dec 6, 2025
- Index Options Position Limits
- Rs 1,500 crore (Net), Rs 10,000 crore (Gross)