New SEBI rules to curb F&O frenzy, aim to protect small investors - Indian Express

Context

SEBI has introduced new rules to curb speculation in the Futures & Options (F&O) market and protect retail investors, focusing on reducing risks and improving market stability.

Why need for the Rules?

• Increase in Speculative Activity: The F&O market has seen increased speculative activity, particularly from retail investors in smaller cities.
• Key Measures: SEBI has raised entry barriers, reduced intraday leverage, and ensured real-time monitoring to maintain market stability.
• Volatility Concerns: The changes address speculative trading practices, particularly on expiry days, which cause significant market volatility.