The new norms for derivative trading will be rolled out in phases, starting November 20. Index derivative contracts with weekly expiries, increase in contract sizes and and increase in tail risk coverage by levying additional extreme loss margin (ELM) will be launched from that day.

To curb speculative trading, markets regulator Sebi on Tuesday put in place a stricter framework for equity index derivatives by increasing the minimum contract size and mandating upfront collection of option premiums.

Sebi rolls out six measures to enhance the derivatives framework and protect retail investors in F&O trading. Notable changes include increasing the minimum contract size to Rs 15 lakhs, reducing expiries per week,

As retail investors are increasingly incurring losses in equity index derivatives (F&O) trade, SEBI on Tuesday put in place as many as six measures to strengthen the derivatives framework, including raising minimum contract size.

The proposed changes follow a recent analysis by the Securities and Exchange Board of India (SEBI), which revealed the financial struggles of retail investors in the equity futures and options (F&O) segment.