BSE, Angel One, other capital market stocks rose up to 2.5% on July 9 as SEBI clarified there is no proposal to link options exposure with cash market holdings.
In a social media post, the market regulator said it will ensure transparent public consultation for any future regulatory changes.
"Apropos reports in some sections of media around supposed proposals to link option leverage limits to cash positions, it is clarified that no such proposal is currently under consideration. As ever, SEBI will follow due process including transparent and public consultation around any proposed changes to any regulation or circular," said SEBI in an X post post-market hours on July 8.
Apropos reports in some sections of media around supposed proposals to link option leverage limits to cash positions, it is clarified that no such proposal is currently under consideration.As ever, SEBI will follow due process including transparent and public consultation…
— SecuritiesandExchangeBoardofIndia (@SEBI_updates) July 8, 2025
Following the clarification, the capital market stocks recovered on July 9 a day after getting battered.
At 9:50 am on July 9, BSE shares on NSE were trading 2.5% higher at Rs 2,541 apiece.
Shares of Angel One and Anand Rathi were trading 1.29% and 1% higher, respectively. Meanwhile, shares of CDSL and Motilal Oswal Financial Services were trading 0.7% and 0.6% higher, respectively.
On July 8, CNBC-TV18 reported that SEBI may consider linking options leverage to cash positions through a formula.
Such a linking is likely to increase cash market liquidity and reduce options liquidity and also reduce excessive speculation and, thus, protect retail investors.
SEBI may also discuss other steps to curb retail trading in options, the channel reported.
CNBC-TV18 also reported that SEBI is considering increasing cash market volume through shorting using stock lending and borrowing mechanism.
Nearly 91% of individual traders incurred losses in the equity derivatives segment in fiscal year 2025, according to a study released by markets regulator Sebi on Monday.
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