--- title: "What are SEBI's F&O rules on lot size, weekly expiry and" description: "SEBI's circular of 1 Oct 2024 set six measures, among them one weekly expiry per exchange and a higher minimum contract value for new index lots." source_url: "https://www.rupeecase.com/learn/questions/sebi-fo-rules" --- SEBI's F&O rules arrived in dated steps, so each rule needs its circular date 1. 1 Oct 2024**Six measures in one SEBI circular**Upfront premium, expiry day margins, lot sizes, one weekly expiry and intraday checks, with start dates from 20 Nov 2024 to 1 Apr 2025. 2. 20 Nov 2024**One weekly expiry per exchange**NIFTY on NSE and SENSEX on BSE, and the BANKNIFTY weekly ends. The new contract value rule and the extra expiry day margin start the same day. 3. 1 Feb 2025**Upfront premium and no calendar offset on expiry day**Net premium is collected with margin. The calendar spread benefit ends on expiry day. 4. 26 May 2025**Expiry only on Tuesday or Thursday**An exchange's equity derivatives expire on Tuesday or Thursday only. 5. 1 Sep 2025**NIFTY to Tuesday, SENSEX to Thursday**NSE moves off Thursday and BSE moves off Tuesday, for contracts expiring from this date. 6. 7 Dec 2026**Expiry settles on a 30 minute VWAP**Index expiry is computed from the VWAP of its constituents over the last thirty minutes of continuous trading, under the 15 Oct 2026 circular. Dated steps in SEBI circulars and the NSE and BSE notices that implement them, from 1 Oct 2024 to 7 Dec 2026. Each measure has its own start date, and the text gives them. Source: SEBI circulars of 1 Oct 2024, 26 May 2025 and 15 Oct 2026; NSE and BSE implementing notices. As of 16 Oct 2026. The circular of 1 Oct 2024 sets six measures, and each one starts on its own date. The timeline lists the main steps. On lots, a new index contract must be worth at least Rs 15 lakh when it is introduced, and the lot is set so that its value on the review day sits in a band of Rs 15 to 20 lakh. SEBI's master circular of 30 Dec 2024 has exchanges review the lot every six months, and a higher lot applies only to new contracts. On weekly expiries, one benchmark index per exchange can have a weekly contract. That is NIFTY on NSE and SENSEX on BSE, from 20 Nov 2024. On premium, from 1 Feb 2025 the net option premium is collected upfront from buyers, with the initial margin and the extreme loss margin, and the clearing corporations can check it in their intraday margin snapshots. Short options that expire on the day carry an extra 2% extreme loss margin, from 20 Nov 2024. The calendar spread benefit is also removed for contracts expiring that day. Expiry days have moved since the first rules. SEBI's circular of 26 May 2025 limits an exchange's equity derivatives to Tuesday or Thursday. From contracts expiring on 1 Sep 2025 NSE's NIFTY weekly moved from Thursday to Tuesday, and BSE's SENSEX moved from Tuesday to Thursday. Until 7 Dec 2026 the index expiry value is the index close on expiry day. From 7 Dec 2026 it is computed from the VWAP of the index constituents over the last thirty minutes of continuous trading, under SEBI's circular of 15 Oct 2026. Read each figure with its circular date. **Before you trade.** Derivatives trading carries a high risk of loss. SEBI's study "Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26)" (August 2026) found that 87.7% of individual traders in equity F&O made net losses in FY26, with aggregate net losses of Rs 91,685 crore. [Read the SEBI study](https://www.sebi.gov.in/reports-and-statistics/research/aug-2026/study-profitability-of-individual-traders-in-the-equity-derivatives-segment-fy25-fy26-_103835.html) What are SEBI's F&O rules on lot size, weekly expiry and upfront premium?SEBI's circular of 1 Oct 2024 set six measures, among them one weekly expiry per exchange and a higher minimum contract value for new index lots, both from 20 Nov 2024, and upfront collection of the option premium from buyers, from 1 Feb 2025. SEBI's circular of 26 May 2025 then limited expiries to Tuesday or Thursday, and each rule starts on its own date, so read each figure with its circular date. LGo deeper ## Where Learn teaches this. [Go deeperContract specs that matter now: lots, expiry days, strikes and settlement9 min, Beginner](/learn/path-12/module-12-4-contract-specs-lots-and-expiries)[Go deeperMargins without jargon: SPAN, exposure, expiry day margin and upfront premium8 min, Beginner](/learn/path-12/module-12-5-fo-margins-explained)[Module 6.6Derivatives, Futures and Options for the Systematic Investor9 min, Path 06](/learn/path-6/module-6-6-derivatives-futures-options)[Module 11.4SEBI Regulatory Framework: What Every Investor Must Know9 min, Path 11](/learn/path-11/module-11-4-sebi-regulatory-framework-what-every-investor-must-know) SSources ## Go to the source. 6 sources, SEBI the most cited The publisher of each source listed below. Source: Module undefined source list. 1. [SEBI circular SEBI/HO/MRD/TPD-1/P/CIR/2024/132, measures to strengthen the equity index derivatives framework (1 Oct 2024)](https://www.sebi.gov.in/legal/circulars/oct-2024/measures-to-strengthen-equity-index-derivatives-framework-for-increased-investor-protection-and-market-stability_87208.html) SEBI 2. [SEBI circular on expiry day for equity derivatives contracts (26 May 2025)](https://www.sebi.gov.in/legal/circulars/may-2025/final-settlement-day-expiry-day-for-equity-derivatives-contracts_94189.html) SEBI 3. [SEBI master circular for stock exchanges and clearing corporations (30 Dec 2024), lot size rules in chapter 5](https://www.sebi.gov.in/legal/master-circulars/dec-2024/master-circular-for-stock-exchanges-and-clearing-corporations_90353.html) SEBI 4. [SEBI circular HO/47/11/11(3)2025-MRD-POD2/I/23843/2026, closing auction session, market timings and settlement methodology (15 Oct 2026)](https://www.sebi.gov.in/legal/circulars/oct-2026/review-of-certain-aspects-of-the-closing-auction-session-market-timings-and-settlement-methodology-for-derivatives-contracts_105293.html) SEBI 5. [NSE, equity derivatives contract specifications (instruments, trading cycle and expiry day)](https://www.nseindia.com/static/products-services/equity-derivatives-contract-specifications) NSE 6. [BSE notice 20250623-59, revision in expiry day of index and stock derivatives contracts: SENSEX weekly from Tuesday to Thursday (23 Jun 2025)](https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20250623-59) BSE ?Questions people ask ## Related questions. 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