SEBI New Circular: Significant modifications to the regulation of futures and options have been announced by market regulator SEBI. Entry and exit regulations have been strengthened. Controlling stock manipulation is its goal.
SEBI New Circular: Concerning futures and options, the market regulator SEBI has released a new circular. To reduce stock manipulation, the market regulator has tightened entrance and exit requirements. Stocks that don’t fit the criteria will have enough time to sell. The market-wide position limit has been raised to Rs 1500 crore by SEBI. The daily cash segment volume has surged from Rs 10 crore to Rs 35 crore on average.
In addition, from Rs 25 lakh to Rs 75 lakh, the median quarterly order sigma size has grown. If the benchmark based on the half-yearly average volume is not reached for three consecutive months, exit conditions will be enforced. In stocks that are being liquidated, there won’t be any new contracts opened, but there will be a chance to close any that already exist.
The updated SEBI standards will take effect right now. The aim of SEBI is to retain enterprises in this area that possess adequate market breadth and of superior quality. The limit on the broad positions has been raised to Rs 1500 crore. The company will be eliminated from the derivatives area if this requirement is not fulfilled for three consecutive months. At present, enterprises in this area are granted a gestation time of six months. The stock will not be allowed to reenter the F&O segment for a year after it leaves.
