Sebi has raised barriers for equity derivatives trading, lowering weekly options contracts to one and increasing minimum trading amounts significantly.

Different stock exchanges offer short tenure options contracts on indices which expire on every day of the week. The SEBI consultation paper had noted that there is hyperactive trading in index options on expiry day, with average position holding periods ...

Market regulator Sebi has tightened the derivative norms by rationalising the weekly expiry contracts for the options segment. Under the new rules, exchanges can offer expiry contracts for only one index.

Market regulator Sebi has announced a slew of measures to strengthen index derivative framework to protect investors and improve market stability, including reducing expiries to a weekly basis. Each exchange will be allowed to provide derivatives contracts for only one of its benchmark index with weekly expiry.