Sebi Proposes Tightened Rules for Index Derivatives to Curb Speculative Trading

India’s market regulator, SEBI, has proposed new rules for index derivatives aimed at curbing speculative trading. These measures include revising the minimum contract size, requiring upfront collection of option premiums, and rationalizing strike prices. The move comes after concerns were raised about rising retail investor participation in derivative trading, particularly in light of the recent increase in securities transaction tax (STT) on futures and options trade.

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