SEBI F&O Rules: ₹15 Lakh Lot Size and One Weekly Expiry

In November 2024 a small Pune trader who used to buy one Nifty options lot for a few thousand rupees found the cost had jumped sharply: the lot size tripled from 25 to 75 units, so a single contract now needs roughly ₹15 lakh of underlying value to trade. This was not a broker error. It was a deliberate SEBI rule change.

If you trade index options, the easiest way to see the impact is a before-and-after view.

On the contract value rule, SEBI set the lot size so a new index derivative contract has a value of not less than ₹15 lakh, and stays between ₹15 lakh and ₹20 lakh when reviewed. On weekly expiry, each exchange may now offer weekly-expiry option contracts on only ONE of its benchmark indices. NSE retained weekly expiry only on Nifty; BSE retained it only on Sensex.

The regulator is the Securities and Exchange Board of India (SEBI). It acted because retail traders were losing money at scale in the futures and options (F&O) segment.

According to a SEBI study published in September 2024, around 93% of individual F&O traders made net losses over FY2022-24. SEBI framed the six measures as a way to strengthen the equity index derivatives framework and curb excessive retail speculation, especially the cheap, high-volume bets concentrated around weekly expiry days.

The package works on two fronts. The bigger lot size raises the capital you need to take a position, so casual punters trade less. Cutting weekly expiries to one index per exchange removes the many short-dated, lottery-style contracts that drew the most speculative volume.

The practical effect is simple: you need more capital, and you have fewer expiry-day bets to make.

1. Higher capital per trade. A single Nifty options position is now built on a contract worth around ₹15 lakh of underlying value. Your premium outlay and margin both rise compared with the old 25-unit lot.
2. Premium paid upfront. From 1 February 2025, brokers collect the option premium from buyers upfront. You cannot ride a position on leverage you do not have.
3. Fewer expiry-day gambles. With only Nifty on NSE and Sensex on BSE carrying weekly expiry, the daily expiry churn across multiple indices is gone.
4. Tighter expiry-day margins. An additional 2% Extreme Loss Margin applies to short option positions on expiry day, and the calendar-spread margin benefit no longer applies on that day.

None of this bans F&O trading. It raises the entry bar and removes some of the cheapest, riskiest setups. If you trade, size your positions for the new contract values and treat expiry-day shorts as more expensive than before.

A rule change is not the same as a broker problem. But if a broker mis-stated margins, executed trades without your consent, or refused to act on the new framework correctly, you can complain to SEBI.

File the complaint on SEBI SCORES, the regulator's online grievance portal. Read how to file a SEBI SCORES complaint before you start, so you have your trade details and broker correspondence ready. If you are unsure whether SEBI is even the right regulator for your issue, check which regulator to complain to in India.

For the money side, F&O losses have a specific tax treatment. They are usually non-speculative business income, which affects which return form you file and how you can set off losses. See how to report F&O losses in ITR-3 for the detail. Note: this guide does not state tax rates; check the linked page and confirm current figures before filing.

If you also trade currency, the legality rules are different again. See whether forex trading is legal in India.

To understand your wider rights to ask any public authority for records and decisions, read The RTI Playbook.

The Nifty lot size moved from 25 units to 75 units, effective 20 November 2024. This was done so a new index derivative contract has a value of not less than ₹15 lakh, kept between ₹15 lakh and ₹20 lakh when reviewed. The change comes from SEBI circular SEBI/HO/MRD/TPD-1/P/CIR/2024/132 dated 1 October 2024.

Each exchange may offer weekly-expiry option contracts on only one of its benchmark indices. NSE retained weekly expiry only on Nifty. BSE retained it only on Sensex. This took effect on 20 November 2024. Other weekly-expiry index contracts were discontinued under the same SEBI framework.

From 1 February 2025, brokers must collect the option premium from buyers upfront. This was one of the six measures in SEBI's 1 October 2024 circular, phased in over several dates. It means a buyer cannot hold an options position on leverage they have not paid for.

SEBI acted to strengthen the equity index derivatives framework and curb excessive retail speculation. According to a SEBI study, around 93% of individual F&O traders made net losses over FY2022-24. The six measures raise the capital needed per trade and cut the number of short-dated, expiry-day contracts.

File a complaint on SEBI SCORES, the Securities and Exchange Board of India's online grievance portal. Keep your trade contract notes, margin statements, and broker emails ready. SCORES is for issues like unauthorised trades or wrong margin treatment, not for disagreeing with the rule change itself.

• Check your broker's current Nifty or Sensex lot size and confirm it matches the ₹15 lakh to ₹20 lakh contract value band.
• Recalculate the capital you need per position under the 75-unit Nifty lot before your next trade.
• If a broker mishandled margins or trades, gather your statements and open a complaint on SEBI SCORES.
• If you booked F&O losses, read the ITR-3 reporting guide before you file your return.

1. SEBI circular SEBI/HO/MRD/TPD-1/P/CIR/2024/132 dated 1 October 2024, measures to strengthen the equity index derivatives framework.
2. SEBI study, September 2024, on individual trader profit and loss in the equity F&O segment.
3. Securities and Exchange Board of India (SEBI), investor grievance portal SCORES.