1. Increase in contract size for index derivatives: SEBI increased the contract size from ₹5-10 lakh to ₹15-20 lakh. This raises the bar for entry into the FnO market, thereby excluding small retail investors from the game. Larger contracts require higher capital, making it difficult for smaller participants to engage in speculative trading.

2. Rationalization of weekly expiry index derivative products: SEBI has reduced the number of weekly expiry options for index derivatives. This should limit speculation while promoting a more stable market. Exchanges like NSE and BSE are now allowed to offer weekly derivative contracts for a single benchmark, reducing the range of options available to traders.

3. Initial collection of the Premium Option: From February 2025, brokers must collect the full premium up front from option buyers. Previously, some brokers allowed traders to take positions using leverage, thereby reducing the initial cost. The new rule effectively eliminates this practice, further restricting speculative participation.

4. Intraday Monitoring of Position Limits: Another crucial change is the introduction of intraday monitoring of position limits. This will occur at random intervals throughout the trading day. Traders must now constantly monitor their positions to avoid exceeding the new limits, thereby adding complexity to their strategies.

5. Increased tail risk coverage on expiration days: To manage volatility during expiration days, SEBI has introduced an additional margin requirement, known as ‘extreme loss margin’. This will increase margin requirements for option sellers by 2% on the day options expire, in an effort to guard against large price swings.

6. Removed calendar propagation processing on expiration days: Calendar spreads involve holding long and short positions in contracts with different expiration dates. SEBI has removed the margin advantage for these positions on expiration days, making it costlier to hold these positions.