The Securities and Exchange Board of India (SEBI) has introduced several significant changes to the regulations governing futures and options (F&O) trading, aimed at improving market stability and curbing excessive speculation. Key updates include:

1. Increase in Contract Size: The minimum contract size for index derivatives will be raised from ₹5-10 lakh to ₹15-20 lakh. This change, effective November 2024, is expected to reduce speculative trading and target larger, more serious market participants.
2. Limit on Weekly Expiries: SEBI has reduced the number of weekly expiries for index derivatives to just one per exchange. This change aims to reduce volatility caused by frequent expirations and will also be implemented in November 2024.
3. Stricter Margin Requirements: From February 2025, option premiums must be collected upfront, and additional margins will be required for short options on expiry day. An extra 2% margin will also be imposed to protect against market swings.
4. Intraday Monitoring: From April 2025, exchanges will monitor intraday positions to prevent excessive risk-taking, further enhancing market discipline​.

These measures are expected to reduce trading volumes by 20-30% while ensuring more disciplined and stable trading environments.