Following the introduction of a new regulatory framework by the Securities and Exchange Board of India (SEBI) to regulate the F&O market, which was viewed as less stringent than expected, the BSE share price jumped by about 10% and reached an all-time high. On Tuesday evening, SEBI announced a set of six new recommendations that included capping the weekly expiration of index futures and collecting premiums upfront. Between November 2024 and April 2025, these six rules will go into force.
Two notable deviations are the 2% rise in expiry-day margins compared to the 8% recommendation and the 2-3x increase in lot size compared to the previous 3–4x plan.
The opening price of BSE shares on the NSE was ₹3,800 per share today. The stock had intraday highs of ₹4,235 and lows of ₹3,745.05. The BSE share price is on an upward trend and is building a higher top higher bottom structure, according to Ruchit Jain, Lead Research Analyst at 5paisa. Good volumes are also supporting the upward trend, so the momentum is probably going to continue.
Following the release of SEBI's new framework, brokerage company, Motilal Oswal Financial Services in its report has maintained a ‘Neutral’ rating on BSE.
The brokerage's study indicates that the premium to notional turnover ratio would increase from 0.072% to 0.09% and that there would be little effect on BSE profitability if the derivative volumes fell by 20% rather than the anticipated 22% growth.
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