MUMBAI: Sebi's New Move on Index Options

The Securities and Exchange Board of India (Sebi) has noticed that individual trading activity in the index options segment of the derivatives market hasn't decreased as much as anticipated. This observation has prompted the regulator to consider implementing further measures to curb excessive individual participation.

Recent Findings and Actions

An analysis of trading activities from December 2024 to March 2025 revealed that, despite a year-on-year decline, the volume of trades by individual investors remains significantly higher than levels recorded two years prior. In response to these findings, Sebi had previously introduced restrictions in November last year to protect individual investors, given that over 90% of their trades resulted in losses.

Looking Ahead

Sebi is committed to ensuring a balanced and fair derivatives market. The regulator's ongoing review of index options trading underscores its dedication to safeguarding investor interests while maintaining market integrity.