look news india
Market regulator SEBI has issued a new circular regarding futures and options. The market regulator has tightened the rules regarding entry and exit so that stock manipulation can be curbed. Stocks that do not meet the standards will get time to exit. SEBI has increased the market wide position limit from Rs 500 crore to Rs 1500 crore. Daily cash segment volume on an average basis has been increased from Rs 10 crore to Rs 35 crore.
In addition, the average quarterly order sigma size has been increased from Rs 25 lakh to Rs 75 lakh. Exit conditions will apply if the half-yearly average volume based benchmark is not met for 3 consecutive months. New contracts will not be opened in the exiting stock, but there will be an opportunity to close the existing contract.
SEBI's revised guidelines will come into effect immediately. SEBI's objective is to retain companies with high quality and sufficient market depth in this segment. The wide position limit has been increased to Rs 1500 crore. If this criterion is not met for three consecutive months, the company will be removed from the derivatives segment. Currently, companies in this segment have been given a gestation period of 6 months. Once the stock exits the F&O segment, it will not get re-entry for one year.
