SEBI has today announced to tighten the rules related to trading in futures and options. These new rules will come into effect from November 20. One of these rules is regarding option buyers. According to the new rules of SEBI, upfront premium will be taken from option buyers. According to SEBI, upfront collection of option premium from option buyers will be applicable from February 1, 2025.

SEBI said in its release that the price of options does not move in a straight line and involves very high leverage (trade on margin). These are time-bound contracts and can see sharp rises or falls. To ensure that the end client does not get any intraday leverage in an unfair manner and to curb such working methods which do not allow the opportunity to build positions beyond the limit of collateral at the end-client level, it has been decided that the option premium should be collected upfront by the trading member and clearing member from the option buyers. According to SEBI, this rule will come into effect from February 1, 2025 so that there is enough time to take this step. What are the other decisions of SEBI Apart from this, SEBI has made many more announcements in which the value of index derivative contracts has been increased and the rule of only one weekly expiry of an exchange every week has also been announced. At the same time, SEBI has said that the benefits of calendar spreads of expiry will not be available. Announcements such as intraday monitoring of positions are also included. The rule on calendar spreads will come into effect from February 1, 2025. Intraday monitoring of position limits will come into effect from April 1, 2025. The remaining rules will come into effect from November 20, 2024.