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SEBI has planned to change the rules related to derivatives (F & amp; O) in the stock market, which will have uniform rules for expiry. Actually, its goal will be security in investors and maintaining stability in the market. Also, reducing the risk related to increasing trading volume on the day of expiry.

A suggestion in the consultant paper on behalf of SEBI has suggested that the expiry of any exchange equity derivatives should be on Thursday or Tuesday, which helps to avoid more fluctuations during expiry days and can control trading volatility. SEBI has asked people his opinion on the new proposal and by 17 April 2025, stakeholders will be able to give their suggestions.

& nbsp; Let us know what are some rules in the new proposal:

1-No exchange contract expiry or setment date without prior permission of SEB will change.

The minimum duration of 2-Index futures, stock futures and other non-benchmark index options will be one month. They will expiry on the last Tuesday or Thursday of every month.

3-Every exchange will get a weekly benchmark index contract option, which will be expiry on Tuesday or Thursday. Which they themselves will be able to choose the exchange option.

Significantly, this proposal from SEBI has come at such a time, instead of expiry, there is a significant increase in the trading of index options, which has increased the safety of investors and the stability of the market. SEBI had earlier issued a circular in October 2024 and directed to control the instability related to expiry.

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