SEBI proposes new measures for futures and options trading citing investor protection and market stability.
New rules for setting strike prices to reduce speculative trading and ensure stability in the market.
Buyers must now pay the full premium upfront for options, reducing over-leveraging and risky trades.
Removal of margin benefits for calendar spread positions on expiry day to prevent risky strategies.
Position limits will be monitored intraday to prevent breaches and ensure market integrity.
Minimum contract size increased to ₹15-20 lakhs, and later to ₹20-30 lakhs, to reduce risk.
Weekly options contracts are proposed to be limited to a single benchmark index per exchange to reduce speculation.
ELM will increase by 3% the day before expiry and by 5% on expiry day to manage risks. These are proposed changes, the final circular will be released after public comments.