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SEBI derivatives curbs
What it is
A sequence of measures to reduce retail losses in index and stock derivatives - higher contract sizes, fewer weekly expiries, upfront premium collection and, from 5 May 2026, removal of calendar spread benefits on expiry day for single-stock derivatives
Active client accounts fell from about 4.92 crore to 4.57 crore
Impact on industries
- Derivatives volumes are the main revenue driver for discount brokers, so curbs hit the segment that funded their growth
- Removing calendar spread benefits raises expiry-day margin requirements by treating spreads as independent legs, reducing liquidity precisely when volumes concentrate
- Active account decline is the clearest evidence of impact, and re-acquiring lapsed traders costs more than retaining them
- The measures address documented retail losses, and diversification into margin funding, wealth and distribution cuts dependence on transaction volumes