This circular outlines measures to strengthen the equity index ...

Tightening Index Options Rules for Investor Safety and Market Stability.

Circulars SEBI

October 3, 2024

This circular outlines measures to strengthen the equity index derivatives framework for increased investor protection and market stability. Key points include mandating upfront collection of option premiums from buyers, removing calendar spread treatment on expiry days, introducing intraday monitoring of position limits, increasing minimum contract size to Rs. 15-20 lakhs for new index derivatives, allowing only one weekly expiry index derivative per exchange, and levying additional extreme loss margin of 2% on short options expiring that day. These changes aim to address risks from excessive speculative trading in index options nearing expiry, ensure suitability for investors, and promote basic risk management practices. Implementation timelines range from November 2024 to April 2025 for different measures.

View Source

← Previous

This circular outlines measures to strengthen the equity index ...

Tightening Index Options Rules for Investor Safety and Market Stability.

Circulars SEBI

October 3, 2024

You may also like:

The circular issued by the Securities and Exchange Board of India (SEBI) announces the repeal of previous circulars concerning the procedure for dealing with cases...

After the petitioner exercised option for application of safe harbour rules in accordance with the provisions of rule 10THC the Assessing Officer passed no order under...

The Securities and Exchange Board of India (SEBI) has introduced new regulations titled "Securities and Exchange Board of India (Index Providers) Regulations, 2024,"...

SEBI issued a circular on eligibility criteria for launching Options with Commodity Futures as underlying by Stock Exchanges with commodity derivative segments. The...

Deduction of compensation cost of ESOP on account of Employee Stock Option Scheme (ESOP) - , an adjustment to the income is called for at the time of exercise of option...

Investor Education and Protection FundAuthority (Accounting, Audit, Transfer and Refund)Second Amendment Rules, 2019

Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 - Notification

Reversal of CENVAT Credit - There is no requirement under Rule 6(3)(i) and Rule 6(3A) of the Cenvat Credit Rules that the option had to be exercised on the first day of...

The SEBI circular dated April 23, 2024, extends cross margin benefits for offsetting positions with different expiry dates. Spread margins of 40% for correlated indices...

Extension of date for filing of option availed for composition levy - Rule 3 as amended

SEBI has issued a Master Circular dated August 04, 2023, revising guidelines for the Investor Protection Fund (IPF) and Investor Services Fund (ISF) for stock exchanges...

CENVAT Credit - common inputs and input services - the various options under Rule 6 are options given to the assessee and the Revenue cannot choose one of the options...

Passive schemes like equity oriented ETFs and Index Funds based on widely tracked and non-bespoke indices can invest up to 35% of net assets in group companies of...

Cenvat Credit - Scope of Rule 6 - pay an amount @8% (6% w.e.f. 07/07/2009) or to reversal proportionate credit - Mere failure to exercise the option under Rule 6(3A)...

This circular issued by SEBI signifies a significant step towards strengthening regulatory oversight in the Indian securities market. By expanding the framework of...

Quick Updates: