SEBI’s 1 October 2024 circular set out six measures for India’s equity derivatives market, covering premiums, margins, contract sizes and monitoring. This historical explainer identifies that document and its main subjects. It is not a statement of every rule currently applicable to trading.
What the 2024 framework covered
| Measure | Summary of the circular |
|---|---|
| Option premiums | Upfront collection from buyers. |
| Calendar spreads | Removal of spread benefits for contracts on their expiry day. |
| Position monitoring | Intraday checks of index-derivative position limits. |
| Contract sizes | At least ₹15 lakh at introduction; a ₹15–20 lakh range when fixing lot sizes at review. |
| Weekly expiries | One benchmark index with weekly derivatives per exchange. |
| Expiry-day protection | An additional 2% extreme loss margin on expiring short options. |
Why SEBI introduced the measures
The circular discussed growing retail participation, short-tenure options and speculative activity on expiry days. It followed an expert working group, consultation and discussions with exchanges and clearing corporations.
Publication date is not the same as implementation date
The original document set different implementation dates for different measures. To establish requirements for a particular date, follow the original circular through subsequent amendments and exchange notices. This archive does not replace that check.
How to interpret a derivatives headline
- Look for the exact circular or consultation paper being discussed.
- Distinguish a proposal from an adopted measure.
- Check whether the subject is an index contract or an individual-stock contract.
- Keep contract value, premium and margin separate; they describe different quantities.
- A historical explanation is not a recommendation to trade.
Official source and related reading
Read SEBI’s 1 October 2024 circular (PDF). This article was revised on 27 September 2026 to replace unsourced claims about regulatory intentions with a dated document summary.
For another example of separating an announcement from later implementation, see our February 2026 US–India trade framework explainer.
