The circular revises the eligibility criteria for entry and exit ...

New eligibility norms for stock derivatives tightened to curb manipulation.

Circulars     SEBI

August 31, 2024

The circular revises the eligibility criteria for entry and exit of stocks in the derivatives segment. Key changes include increasing the minimum Median Quarter Sigma Order Size, market-wide position limit, and average daily delivery value requirements for entry. Exit norms are based on failure to meet these criteria for three consecutive months. A Product Success Framework with criteria like minimum trading members, turnover, and open interest is introduced for exit. The circular aims to ensure sufficient depth and quality of stocks in the derivatives segment while mitigating risks of manipulation and volatility. Provisions for implementation by stock exchanges and the legal basis are also outlined.

View Source