India's markets regulator has proposed rules to curb possible manipulation and limit the spill-over of volatility from equity derivatives into the broader cash market, which has slipped sharply after hitting record highs in September 2024.

Equity derivatives are contracts between investors to buy or sell an underlying asset at a future date and price

India’s market regulator, the Securities and Exchange Board of India (SEBI), has proposed new measures to limit risks in the derivatives market. The changes include reducing position limits for equity derivatives and tightening rules for index derivatives.

India's market regulator on Tuesday proposed technology-based measures to secure the trading environment and to prevent unauthorised transactions in investors' trading or demat account.