Mumbai: The market regulator SEBI is on a mission to tighten risks while making life easier for retail investors. In a series of three major updates, the Securities and Exchange Board of India (SEBI) has overhauled rules for the Stock Market, specifically targeting derivatives trading, Mutual Fund management, and the commodity segment. This move is a giant leap toward strengthening risk management and improving the "Ease of Doing Business."
These changes will fundamentally shift how the Stock Market operates in the coming months. While traders need to brace for new margin requirements on expiry days, Mutual Fund holders can look forward to a much smoother experience. Here is everything you need to know about SEBI's triple action.
1. Stock Derivatives: The Expiry Day Margin Twist
Following the footsteps of Index Derivatives (like Nifty or Bank Nifty), this rule aims to curb excessive risks on settlement days. Traders in the Stock Market will now need to keep extra margin handy or rollover their positions earlier.
Effective Date: May 5, 2026
2. Demat Mutual Funds: SWP & STP Made Simple
If you hold your Mutual Funds in a Demat account, SEBI has a massive gift for you. Currently, setting up a Systematic Withdrawal Plan (SWP) or Systematic Transfer Plan (STP) for Demat units is a tedious process requiring repeated instructions. SEBI is now proposing a "Standing Instruction" facility to automate this.
This "Ease of Doing Business" initiative will be rolled out in two phases: first for unit-based withdrawals and then for amount-based ones. SEBI is inviting public suggestions on this proposal until February 26, 2026. This is a game-changer for those looking for regular income from their Stock Market investments.
3. Commodity Market: Smarter Risk Management
SEBI has also turned its attention to the Commodity Derivatives market. A new consultation paper suggests lowering the 'Z-Score'—a key risk metric—from 10 to 5 to make risk calculations more precise. Additionally, SEBI plans to ease the rules for the Settlement Guarantee Fund (SGF), shifting the focus to the top 3 clearing members rather than a blanket 50% default cover. These moves are designed to boost liquidity and modernize the Stock Market's commodity wing.
The Bottom Line
Whether you are a high-frequency trader or a long-term investor, SEBI's latest moves are designed to create a safer environment. While the Union Budget 2025-26 provided the fiscal roadmap, SEBI is ensuring the plumbing of the Stock Market remains leak-proof. Especially for Demat holders, the automated SWP proposal is being hailed as a revolutionary step for convenience.
Disclaimer: Investing in the Stock Market is subject to market risks. Please consult an advisor before making any financial decisions.