Sebi Removes Calendar Spread Margin Benefit for Single-Stock Derivatives on Expiry Day

The Securities and Exchange Board of India (Sebi) has announced that calendar spread margin benefits will no longer apply on the expiry day for single-stock derivative contracts expiring that day. This change, effective in three months, aligns single-stock derivatives with existing index derivatives rules. The move aims to reduce risks from sudden margin shortfalls on expiry day by requiring full margins when one leg of a calendar spread expires, while margin benefits remain for spreads involving only future expiries.