SEBI’s New F&O Rules: A Mixed Bag for Volatility Control

SEBI introduced stricter Futures and Options (F&O) trading rules to reduce market volatility and protect retail investors, including higher contract sizes and new margin requirements. Experts are divided on their impact. Some fear reduced retail participation may decrease liquidity and amplify price swings, while others argue disciplined trading could benefit investors long-term. Institutional players may adapt better to the changes, potentially tilting the market in their favor. While volatility might decrease, concerns over liquidity and participation persist, leaving the full effects of the rules still uncertain.