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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.
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Sebi increased the minimum trading amount for derivatives from Rs 5 lakh to Rs 15 lakh.
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The new measures for derivative trading will be effective November 20, said Sebi in a circular.
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Sebi asked exchanges to monitor intraday position limits for equity index derivatives.
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Starting February 2025, Sebi will enforce upfront collection of options premiums and increased margins. Sebi requires an additional 2% margin for short options contracts on the day they expire.
NIFTY 50 OR BANK NIFTY 
? WHICH ONE DOES NSE CHOOSE
Hopefully, BankNifty stays as it’ll be NSE’s huge loss if they stop it. There’s huge volume in it. But, Nifty options are also required for hedging with NiftyBeEs ETF. I’d say both Nifty and Bank Nifty should stay. SEBI’s chief is like an extremist to impose such drastic changes and ruin the life of profitable traders. The losers will keep losing. But, now the profitable traders will also suffer.
If liquidity goes down how will the biggies profit from the losers in the market if they aren’t even there anymore?
Exactly, bhai yaar i hate these stupid regulators so much ugh. Why is the first thought always regulation instead of education? How about sebi makes sure people understand how deritivatives work ffs. But brains from Indian regulators is very difficult, the socialist mindset will never go away. Be profitable and get out of this country who cares.
If any index needs Weekly hedging, its BankNifty, because of how volatile it is 
We have a discussion on Nifty vs BN
Do you think people not knowing what a put or a call is is the reason for 90% of the people making losses?
How will liquidity go down when volumes from 4 expiries is moving into 1?
Calendar spreads will need to be closed before expiry day as margin benefit will not be provided when near expiry contract is trading on expiry day. The theta decay on the expiry day is highest which cannot be experienced anymore for calendar spreads unless you feed the system with more and more margin.
Liquidity will go up in only specific indices now. But, overall liquidity will be reduced as lesser indices will be traded. Besides, small traders (especially option sellers) will be knocked out of the market.
Why? Number of people gambling will drastically reduce? I thought this meant they are just moving to one casino instead of playing at 4
I don’t care about the gamblers mate. If they keep losing with F&O and they’re not allowed to trade, they’ll make loss by other means. There are profitable retail traders as well and they aren’t gamblers.
Just because gamblers keep making losses, the other traders who are profitable should not be denied to trade due to such extreme regulations.
nobody is leaving the market, people will adjust to new reality and plays different strategies.
i personally hope they keep nifty 50 for weekly. N50 is easy to manage but BNF moves like crazy and doesn’t respect support and resistance most of time.
or why dont they keep both and let it expire on same day 
As someone who is trading exclusively in options (and making profit 
) I understand why SEBI cameup with these regulations. Around 93% of retail traders are loosing money playing options.… 93% imagine …
I was watchinh CNBC Awaaz an hour back, in which Feroze (MF SME) was talking about how financial gaints with there algo trade and AI are minting money in FNO while the retailer with no knowledge of Delta, Gamma, Vega… were blindly playing the FnO game.
Totally agree
I understand what you are saying. Trading in F&O needs a minimum level of knowledge. This should have been the focus of SEBI. And with a gambling mindset, sooner or later you will blow up. I’m annoyed because lots of my strategies which have been consistently profitable will now have to be changed or completely stopped.
It all sebi who introduced physical delivery of stock options and introduced more pain to retailers. Who used to buy option at cheaper rate on expiry days… now shredding tears that retailers are lossing. Yes they are instock.options as they continue to buy at start and loose by paying higer premiums. Last five months all the options which were at 0.05 moved to 40 rs … sunpharma, was first tatamotors.
Retailers now move to another gambling of crypto…any ways they always wants to try luck.
The ratio will remain the same even if the FII trade among themselves , then 93% FII’s will loose
Well, then you are in the wrong market! Your profits are coming from their losses
Just because 10 people are falling prey to a scam, and 1 is not, you will ask government to not take action?
None of this actions are extreme. What I would have done is ban F&O positions being taken for speculative purposes and only allow hedging like they do for mutual funds. This is literally baby measures compared to that. You cannot expect government to sit silently just because you are in profit. 90% of retailers are making losses. 90%? are you understanding how broken and manipulated the system is for retailers?
I have many friends with heavy losses in F&O. They are not the type to invest in ponzi schemes, make money quickly stuff, etc. This F&O is some weird psychological thing where people don’t consider it gambling but some game of luck so they keep trying