These new regulations, set to take effect in phases beginning November 20, could significantly impact market volumes and dampen retail trading sentiment, according to market analysts.

SEBI has introduced measures to curb risks in F&O trading, requiring upfront premiums, increasing contract sizes, and limiting weekly expiries to protect retail investors.

Market experts believe that tighter F&O rules could help limit speculation in the derivatives market, protect the interest of retail investors, increase constructive participation, and improve market stability.

The Securities and Exchange Board of India ( SEBI ) announced a fresh set of guidelines om Tuesday evening aimed at checking speculative trading in the futures and options segment of the stock market.