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Following the earlier regulatory changes in Index Derivatives, SEBI has now extended the Removal of Calendar Spread Margin Benefit on expiry day for Single-Stock Derivatives as well. Exchanges and Clearing Corporations, have also issued circulars detailing the implementation framework.

This change will come into effect from May 04, 2026, and will significantly impact traders who carry calendar spread positions in stock futures and options into expiry day.

Trading in Futures & Options (F&O) is treated as a business activity under Indian Income Tax Act. While traders actively manage entries and exits, taxation is often ignored until the end of the financial year.

Understanding how profits are calculated, how much tax is payable, how losses are carried forward, and when a tax audit applies is essential for every F&O trader.

As per Section 43(5) of the Income tax Act, 1961, Income earned from F&O trading/ Profits made from F&O trading is/are considered as non-speculative business income and it is taxed under the head “Profits & Gains from Business or Profession”.

This guide explains F&O taxation practically, using numerical cases.

Clearing Corporations introduced a dynamic risk-control mechanism called Additional Exposure Margin (AEM) on select Derivative securities where market positions are highly concentrated among a few participants.

Thinking of entering F&O but feeling lost?
Learning these basics can change the way you think

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A complex instrument like F&O demands preparation. Before you step in, get familiar with the key concepts that can help you analyse the market.

Hindustan Unilever Limited is undergoing a corporate demerger, with the record date set as December 05, 2025. Hindustan Unilever (HUL) is demerging its ice-cream business into a new, independent company called Kwality Wall's (India) Ltd (KWIL) with shareholders set to receive KWIL shares on a 1:1 basis.

As a result of this corporate action, existing F&O contracts on Hindustan Unilever   will be impacted. Here is everything you need to know about expiry changes, contract reintroduction, margin requirements, settlement timelines, and how to manage your open positions on ICICI Direct.

National Stock Exchange of India Limited (NSE) & Bombay Stock Exchange (BSE) have announced the introduction of Pre-Open Sessions in the Equity Derivatives (F&O) Segment starting December 8, 2025. This move follows the directions issued by SEBI via its Circular dated May 29, 2025. You can alternatively refer our previous article on Measures for Enhancing Trading Convenience and Strengthening Risk Monitoring in Equity Derivatives for more detailed information.

Tata Motors Limited is undergoing a corporate demerger, with the record date set as October 14, 2025. This reorganisation will separate the company’s passenger vehicles, EV, and Jaguar Land Rover businesses into Tata Motors Passenger Vehicles Ltd, while the commercial vehicle operations will be housed under TML Commercial Vehicles Ltd.

As a result of this corporate action, existing F&O contracts on Tata Motors will be impacted. Here is everything you need to know about expiry changes, contract reintroduction, margin requirements, settlement timelines, and how to manage your open positions on ICICI Direct.

NSE & BSE has announced revised Quantity Freeze Limits for index derivatives, effective September 1, 2025. These changes have been made in pursuance of Chapter 1.8 (Quantity Freeze for Futures & Options Contracts) as per the consolidated circular no. NSE/FAOP/67775 dated April 30, 2025.

The SEBI circular, issued on May 29, 2025, presents a comprehensive framework aimed at improving transparency, risk monitoring, and trading practices in the equity derivatives market. With increasing retail participation and the popularity of short-tenure index options, SEBI has introduced a structured set of measures in consultation with expert working groups and stakeholders to ensure orderly market conduct.

Bajaj Finance Limited has announced a bonus share in the ratio 4:1 and stock spilt in ratio 2:1. The Company has fixed Monday, June 16, 2025 as the Record Date.