SEBI (Securities and Exchange Board of India) announced a revamped Futures & Options (F&O) surveillance framework featuring AI-powered algorithmic surveillance, tightened position limits, enhanced margin requirements, and real-time monitoring. The move follows SEBI's 2024-25 study showing 93% of retail F&O traders incurred losses. NSE and BSE must implement new compliance protocols. SEBI Chairperson Tuhin Kanta Pandey described the framework as essential for market integrity and retail investor protection. India's F&O market is one of the world's largest by number of contracts traded.
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SEBI Strengthens F&O Surveillance Framework with AI-Powered Monitoring; Position Limits Tightened to Protect Retail Investors
Key Points
- SEBI (Securities and Exchange Board of India) announced a revamped Futures & Options (F&O) surveillance framework featuring AI-powered algorithmic surveillance, tightened position limits, enhanced margin requirements, and real-time monitoring
- The move follows SEBI's 2024-25 study showing 93% of retail F&O traders incurred losses
- NSE and BSE must implement new compliance protocols
- SEBI Chairperson Tuhin Kanta Pandey described the framework as essential for market integrity and retail investor protection
- India's F&O market is one of the world's largest by number of contracts traded
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• SEBI: revamped F&O surveillance framework (July 2026); AI algorithmic surveillance + position limits • Trigger: SEBI study showing 93% retail F&O traders made losses (2024-25) • SEBI Chairperson: Tuhin Kanta Pandey; NSE + BSE to comply • SEBI Act 1992: statutory basis; India F&O market: one of world's largest by contract count
