Explained — Here's how the new SEBI regulation impacts BSE, Angel One, and Groww

Now, on the day of the expiry, any spread involving the expiring contract including the current month, will be treated as two independent legs for ...

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What is the story about?

Shares of Angel One, BSE, Billionbrains Garage Ventures (Groww), and 5paisa Capital, are trading with losses of up to 3% on Friday, February 6.

While shares of Angel One and Groww are down up to 3% on Friday, those of BSE and 5Paisa are trading with cuts between 1% to 2%. Stocks are now recovering from those intraday lows.

Market regulator Securities and Exchange Board of India (SEBI) announced on Thursday evening that it has decided to remove the calendar spread benefits for single stock derivatives on expiry day.

Earlier, traders could offset positions across different expiries, such as being long in the current month and being short in the next month, reducing margin requirements.

Now, on the day of the expiry, any spread involving the expiring contract , including the current month, will be treated as two independent legs for margin purposes, as per the new SEBI regulation for calendar spreads.

The regulation will be effective from May 5, 2026.

Aimed at mitigating systemic risk by ensuring Clearing Corporations aren't left exposed the day after expiry. By preventing 'margin gaps,' the rule protects the system from adverse price movements that could occur when positions are no longer hedged.

Shares of Angel One are looking to recover from the lows of the day, currently trading 1.5% lower at ₹2,605. Those of Groww have seen a significant recovery to turn positive, while BSE shares have also recovered from the lows of the day.