Regulatory Alerts2026-02-05
SEBI Circular on Calendar Spread Margin Benefit for Single Stock Derivatives on Expiry Day
The Securities and Exchange Board of India (SEBI) has issued a circular prohibiting calendar spread margin benefits for single stock derivatives on the day of expiry. This decision aligns single stock derivative treatment with existing index derivative rules to mitigate risks associated with sudden margin increases and potential shortfalls. Stock Exchanges and Clearing Corporations are directed to implement necessary system changes and regulatory amendments within three months of the circular's issuance.
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