Changes in Lot Size

What is the rationale behind the changes in Futures and Options new rules mentioned in circular dated November 2024?

SEBIs new regulations as on November 2024 aim to curb excessive speculation and protect retail investors from significant losses in the derivatives market. By increasing the contract size and margin requirements, SEBI intends to ensure that participants have sufficient capital to cover potential losses, thereby promoting market stability.

These measures are part of SEBI's ongoing efforts to enhance the integrity and safety of the Indian financial markets.