Now the new law of futures will come – now the new Qousy of Futures will come – Business Standard

The Securities and Exchange Board of India (SEBI) is ready to implement the new series of measures for the first time in an attempt to change the risk monitoring system in the derivative segment. Its goal is to curb specific activities in the derivative market. Despite some resistance of the industry, the regulator will proceed with major risk standards. However, it has amended some parts of the original proposal. SEBI will adopt a new system for calculating Open Interest (OI). It is known as Future Equivalent or Delta-Based Framework. According to sources, this will increase the gross position limit for index options to Rs 10,000 crore. In the February counseling, a very gross gross limit of Rs 1,500 crore was suggested for index option. It also includes high-frequency businessmen. But it was opposed by many market analysts. His argument was that this would disrupt the business in a legal manner. Most of the proposals have been approved in SEBI’s counseling card. But after the industry’s response, the plan to implement the intraday limit has been postponed. The Secondary Market Advisory Committee of the regulator has approved the revised measures and a formal circular about the new rules is expected to be released soon. The new open interest system will monitor prices related to prices in derivatives according to the underlying securities. This will make the market activities and the position of businessmen more correct. The Market-Wide Position Limit (MWPL) related to the determination of the maximum allowable Open Futures and Options (F&O) deals for a share will now be defined as 15 percent of the free float or less than 65 times of the average daily delivery value. Experts say that this cash is in line with derivative exposure with market liquidity. Foreign portfolio investors and mutual funds for single stock will be limited to 30 percent of the market-wide position limit while individual traders will be allowed up to 10 percent. SEBI believes that this will reduce the rate of preventing manipulation to a great extent and going to Shayer repeatedly in the restriction period. SEBI will increase the monitoring of the Intrade position to monitor the concentration and exposure risks. Exchanges will need to develop a standard operating process to track traders’ activities that include four surprise intraday probes daily to detect potential misuse. Other sanctioned changes include limiting weekly F&O disposal in two days, which is less than the current multiple-expiry system. Any change related to the expiry calendar will first require SEBI approval. This may affect new investors going to equity derivatives (especially metropolitan stock exchange). The Metropolitan Stock Exchange had planned to introduce derivative contracts to expire every week on Friday. SEBI also started a new survey related to the benefit of F&O businessman, which results in by mid -June. In the previous study conducted from 2021-22 to 2023-24, it was found that 93 percent of individual traders lost their money in derivatives. In November last year, SEBI took steps to control excessive betting in F&O. While the business of index option (in terms of premium) declined by 15 per cent on an annual basis, it remains 11 per cent above two years ago. Similarly, the involvement of individual traders is 5 percent lower on an annual basis, but 34 percent higher than in the year 2022. Analysts say that the market regulator is still uncomfortable about high activities in the index option despite the previous intervention. The latest round of reforms aims to balance trading efficiency with strict risk control. First Published – May 11, 2025 | 11:00 PM IST related posts

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