Sebi rolls out six measures to enhance the derivatives framework and protect retail investors in F&O trading. Notable changes include increasing the minimum contract size to Rs 15 lakhs, reducing expiries per week,

To curb speculative trading, markets regulator Sebi on Tuesday put in place a stricter framework for equity index derivatives by increasing the minimum contract size and mandating upfront collection of option premiums.

As retail investors are increasingly incurring losses in equity index derivatives (F&O) trade, SEBI on Tuesday put in place as many as six measures to strengthen the derivatives framework, including raising minimum contract size.

The proposed changes follow a recent analysis by the Securities and Exchange Board of India (SEBI), which revealed the financial struggles of retail investors in the equity futures and options (F&O) segment.

Market regulator Sebi has announced a slew of measures to strengthen index derivative framework to protect investors and improve market stability, including reducing expiries to a weekly basis. Each exchange will be allowed to provide derivatives contracts for only one of its benchmark index with weekly expiry.