Big changes can be seen in the Indian stock market in the coming times. Market regulator SEBI is preparing to change the rules of the cash market and futures and options (F&O) segments. At the ET Now Markets Summit 2026 held in Mumbai, SEBI Chairman Tuhin Kant Pandey presented a roadmap to make the market more robust, transparent and investor-friendly. SEBI believes that these reforms will increase liquidity in the market, reduce risk and also provide better protection to small investors.
Emphasis on long term contracts will increase in F&O
SEBI Chairman said that the main focus of the regulator is to promote long term F&O contracts in the equity segment. Currently, most traders trade in short-term contracts, which increases market volatility and risk. With the introduction of long term contracts, investors will get an opportunity to hedge their positions for the long term. This will increase stability in the market and make risk management easier for investors.
Short selling and SLB rules will be reviewed
SEBI is also reviewing the rules related to Securities Lending and Borrowing (SLB) and short selling. Its objective is to establish better coordination between the cash market and the derivatives market. If there is better coordination between the cash market and the F&O market, then buying and selling of shares will become easier. This will provide more transparency to investors and their confidence in the market will also increase.
Working on new products in collaboration with RBI
SEBI and Reserve Bank of India (RBI) are also working together on the possibilities of new derivative products related to the bond market. If these schemes are implemented, investors may get new options for investment and risk management.
Startups will get big benefits
SEBI is also considering changes in the rules of its Innovators Growth Platform (IGP). This will make it easier for companies working in AI, semiconductor, clean energy, biotech, defense and advanced technology sectors to raise capital from the stock market. This step is expected to give a new boost to India’s emerging startup ecosystem.
Delisting and LODR rules will also become easier
SEBI is preparing to update the rules applicable to companies listed in the stock market as per international standards. Apart from this, the process of removing (delisting) a company from the stock market will also be made easier and faster.
