SEBI has introduced stricter rules for adding and removing stocks in the derivatives segment

SEBI has introduced stricter rules for adding and removing stocks in the derivatives segment
Image Source By : ANI

New Delhi, August 31: The Securities and Exchange Board of India (SEBI) has revised the criteria for including and excluding stocks in the derivatives segment. A circular issued on August 30 details these changes to the Futures and Options (F&O) segment regulations.

SEBI's updated guidelines aim to enhance the efficiency of the securities market. The Median Quarter Sigma Order Size (MQSOS) requirement has been increased from Rs 25 lakh to Rs 75 lakh to ensure only stocks with substantial trading volumes qualify. Additionally, the Market Wide Position Limit (MWPL) has been raised from Rs 500 crore to Rs 1,500 crore to accommodate larger trading volumes.

The Average Daily Delivery Value (ADDV) threshold has been elevated from Rs 10 crore to Rs 35 crore to include only stocks with significant liquidity. Stocks must meet these updated criteria for six consecutive months to remain eligible for derivatives trading.

Under the new rules, stocks failing to meet the criteria for three consecutive months will be removed from the derivatives segment, with a one-year cooling-off period before reconsideration for re-entry.

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