Sebi has drafted new criteria for entry and exit clauses in the derivatives segment. The new standardized framework has raised the medium quarter Sigma order size(MQSOS) over the previous three months by three times ,the minimum market wide position limit(MWPL) by three times and the minimum average delivery value by 3.5x.
Sebi further clarified that the tweaked parameters reflect the commensurate growth in broader markets harmonising the regulatory framework.
Market turnover has expanded 3.5 times since last review so the new MQSOS is to be multiple 3-4 times . Market capitalisation is now 2.8x since the last review so the market wide position limit has been raised to 1500 crore from earlier 500 crore . ADDV similarly has scaled 3x growth so the ADDV has been raised to 35 crores from the previous 10.
If a stock fails to meet any of the above parameters for a continuous period of 3 months , on a rolling basis , based on data for the previous six months ,then it shall exit from the derivatives segment.no further contract could be issued on exited stock but the existing contracts will be permitted till expiry.

The regulator has also introduced a product success framework for a single stock derivative in line with a similar framework in the index derivatives segment.