Current Affairs - Economy - Discussion

SEBI (Securities and Exchange Board of India) has implemented a major reform in the risk monitoring framework for the Futures & Options (F&O) segment by adopting a delta-based method for calculating Open Interest (OI). Unlike the earlier notional-value-based method, the delta-based approach better captures the actual risk exposure by considering the price sensitivity of options to the underlying asset. This shift enhances transparency, curbs manipulation, and improves the alignment of margin requirements with real market risks. It is a step toward aligning India’s derivatives regulation with global best practices and aims to modernize and strengthen the integrity of the capital markets.