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SEBI tightens F&O trading rules for retail investors

Summary

SEBI announced tighter regulations for Futures & Options trading, raising the minimum contract size to ₹15 lakh from ₹5 lakh and mandating a certification course for retail F&O traders effective October 2025.

Key TakeawayOver 93% of retail F&O traders lose money, prompting SEBI to introduce protective regulations.

Key Points

  • Minimum F&O contract size raised from ₹5L to ₹15L.
  • Retail F&O traders must pass a certification test.
  • New rules effective from October 2025.
  • SEBI data: 93% of retail F&O traders lose money.

Key Facts

New Min Contract
₹15 Lakh
Old Min Contract
₹5 Lakh
Effective Date
Oct 2025
Retail Loss %
93%

Why it matters?

Protecting retail investors from speculative losses is central to SEBI's investor protection mandate.