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

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, leading to higher margin requirements to cover both.

The regulation's primary objective is to mitigate systemic risk and will be effective from May 5, 2026.

Another rationale behind the move is to prevent margin gaps occurring on the day after expiry, and as a result, the Clearing Corporation faces a risk if price moves significantly against the unhedged leg before it can be liquidated.

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.