F&O News

SEBI launches a full-scale investigation into US-based Jane Street Group for allegedly using the expiry-day strategy ‘marking the close’—leveraging algorithmic trades to distort Nifty index levels in the final 30 minutes and amass Rs 4,844 crore in profits, even as 91 per cent of retail traders lost money in FY25.

After the Jane Street scam, the exchanges are in action mode. With an aim to curb malpractices affecting retail investor interest, they are using artificial intelligence (AI) to track irregularities with trades. Know how they are workign on making surveillance impenetrable with AI's assistance, how last-minute trades will be monitored and, what new rules may be implemented.

One of the major changes introduced by the SEBI is a new method for measuring open interest (OI) in the equity F&O segment. 

Back in October last year, SEBI had already brought in a number of new rules to manage rising volumes in the futures and options segment.

This decision by NSE has been taken to comply with the new rules issued by the Securities and Exchange Board of India (SEBI) earlier this month for trading in futures and options (F&O).

The SEBI new rules for derivatives contracts will come into effect from November 20.

Under the F&O measures, market regular has increased the minimum contract size in the index derivatives to Rs 15 lakh from the current Rs 5 lakh.

SEBI has also reduced the weekly index expiry count to one per exchange.

Sebi stated that these measures are aimed at enhancing investor protection and promote market stability in derivative markets.

In the first phase NSE has proposed derivative trading in the index between 6 pm to 9 pm while SEBI had asked NSE to take opinion of all stakeholders, Zee Business report has said.  

Making record a habit of sorts, the Nifty on Wednesday closed above 10,000 in a first and the Sensex set a fresh life high, powered by unabated capital inflows amid quarterly earnings optimism. Speculators covered their short positions ahead of the July derivatives expiry tomorrow, building up the momentum.

Trading activities resumed at the National Stock Exchange (NSE) in the afternoon on Monday after the system faced technical glitches in the morning that led to trade disruptions.

Out of this total turnover, trading in index options took the highest share with Rs 4.53 lakh crore followed by stock futures contracts at Rs 69,378.78 crore.