F&O regulation in India

Who regulates futures and options, what SEBI’s 2024 framework changed for traders, and why nobody may sell you tips without a SEBI registration.

SEBI

The Securities and Exchange Board of India regulates the securities markets, including exchange-traded derivatives, stock brokers, investment advisers and research analysts. It sets the rules on contract size, margins, position limits and who may give investment advice.

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NSE and BSE

The stock exchanges list the contracts, set lot sizes and expiry days within SEBI’s rules, publish the trading holidays and run surveillance. NSE lists Nifty options; BSE lists Sensex options.

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Clearing corporations

NSE Clearing and Indian Clearing Corporation guarantee settlement of trades, compute SPAN and exposure margin and take the intraday snapshots used for peak margin and position limits.

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Investor protection

Complaints against a broker go first to the broker, then to SEBI’s SCORES platform, and disputes can be taken to online conciliation and arbitration through the SMART ODR portal. Exchanges also maintain investor protection funds.

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SEBI’s framework for index derivatives

In October 2024 SEBI announced six measures to strengthen the equity index derivatives market, after its studies showed that most individual traders lose money (circular SEBI/HO/MRD/TPD/P/CIR/2024/132 of 1 October 2024).

Larger contracts

New index derivative contracts must have a value of at least ₹15 lakh when introduced; lot sizes are reviewed so contracts stay above this level.

In force from 20 November 2024

One weekly expiry per exchange

Weekly index options only on one benchmark index per exchange: Nifty 50 on NSE, Sensex on BSE. Other indices have monthly contracts.

In force from 20 November 2024

More margin on expiry day

An extra 2% extreme loss margin on short index options on their expiry day.

In force from 20 November 2024

Premium paid upfront

Brokers must collect the full option premium from buyers upfront; no intraday leverage on bought options.

In force from 1 February 2025

No calendar spread benefit on expiry day

Positions offset across expiries lose the margin benefit on the day the near contract expires.

In force from 1 February 2025

Intraday position monitoring

Position limits for index derivatives are monitored during the day, with at least four snapshots, not only at the close.

In force from 1 April 2025

Since 2025 NSE contracts expire on Tuesday and BSE contracts on Thursday. See the expiry calendar and current lot sizes.

What SEBI’s study found

SEBI studies the profit and loss of individual traders in equity F&O every year. Its FY26 study, published 2026-08-20:

87.7%

of individual traders made a net loss

₹91,685 crore

net loss of individual traders

₹1.17 lakh

average loss per loss-making trader

78.6 lakh

individual traders in the year

Earlier studies: 91% loss-makers in FY25, 93% loss-makers in FY22–FY24. Source: SEBI study on profit and loss of individual traders in equity F&O, FY26.

Advice, tips and education

Advice needs registration

Recommending what to buy or sell, for a fee or otherwise as a business, requires registration with SEBI as an investment adviser or research analyst. Paid “tips” on Telegram or WhatsApp from unregistered persons are not legal advice.

No association with unregistered advisers

Since 2024, brokers and other SEBI-regulated entities may not associate with unregistered persons who give advice or claim returns, such as paid referrals by “finfluencers” (circular of 29 January 2025).

Education without live prices

Persons engaged only in education may not use market price data of the preceding three months to name a security or suggest its future price. This site shows no live or recent prices of Indian securities and makes no recommendations.

You can check whether someone is registered in SEBI’s list of registered investment advisers.

Official sources (as of 2 November 2026)

Education only

Last reviewed 2 November 2026. BeInOptions is not registered with SEBI as an investment adviser, research analyst or broker, and nothing here is a recommendation to buy or sell any security or derivative. Rules change by circular; check the current text on sebi.gov.in.