SEBI announced a comprehensive overhaul of futures and options trading regulations, citing data showing 93% of individual F&O traders lost money over three years with total retail losses exceeding Rs 1.8 lakh crore. New rules effective January 2026 raise minimum contract size from Rs 5 lakh to Rs 15 lakh, limit weekly expiries to one per exchange per week, and mandate risk disclosures in regional languages at every trade execution point.
SEBI Chairperson Madhabi Puri Buch said the regulator duty is to protect retail investors from products they do not fully understand. The derivatives industry flagged concerns about reduced liquidity, while financial advisers broadly welcomed the measures. SEBI also announced plans for a mandatory F&O certification requirement for retail investors, modelled on the existing AMFI certification for mutual fund distributors.