SEBI F&O entry barrier rules (October 2024 framework)

Mon, 18 May 2026 00:00:00 +0000

The SEBI F&O entry barrier rules announced on 1 October 2024 are the most consequential tightening of retail access to Indian derivatives in a decade. The framework, set out in a SEBI circular dated 1 October 2024 and operationalised through subsequent exchange-level implementation circulars, comprises six measures that collectively raise the minimum capital required to participate in index futures and options, reduce the volume of weekly expiry contracts, and tighten intra-day risk parameters around expiry. The framework was a direct policy response to a SEBI study published in September 2024 that found 93 per cent of retail individual traders in equity F&O lost money over the three financial years FY22 to FY24, with aggregate net losses of approximately Rs 1.81 lakh crore.

Retail Derivatives on WebNotes

SEBI F&O entry barrier rules (October 2024 framework)