Navigating the New Landscape: Latest SEBI Rules and Regulations for Options Trading in India
Navigating the New Landscape: Latest SEBI Rules and Regulations for Options Trading in India (March 2025) The Indian stock market, particularly the derivatives segment, has witnessed explosive growth in recent years, driven largely by retail participation in Futures and Options (F&O) trading. However, this surge has also raised concerns about speculative excesses, market stability, and investor protection. To address these issues, the Securities and Exchange Board of India (SEBI) has introduced a series of regulatory changes in 2024 and 2025, reshaping the options trading framework. As of March 7, 2025, several of these rules are already in effect, while others are set to roll out in the coming months. In this blog, we’ll dive deep into these regulations, explore their implications with practical examples, and discuss how traders can adapt. Background: Why the Changes? Options trading in India, especially on indices like the Nifty 50 and Bank Nifty, has become a retail pheno...