New expiry day rules from sebi
The Securities and Exchange Board of India (SEBI) has recently introduced new rules for the derivatives market, which aim to reduce volatility and ensure market stability. Some of the key changes related to expiry day rules are: * Single Weekly Expiry: SEBI has mandated that only one weekly expiry will be allowed for index derivatives. This means that instead of multiple weekly expiries, there will be a single standardized expiry date for each week. * Increased Extreme Loss Margin (ELM): SEBI has increased the ELM for short options positions on the day of expiry. This is to protect against potential losses due to increased volatility on expiry days. * Restriction on Calendar Spreads: Calendar spreads, which involve taking positions in options contracts with different expiry dates, have been restricted on the day of expiry. This is to reduce speculative activity and market manipulation. These new rules are expected to have a significant impact on the derivatives m...