The stock market today had a clear mood shift in the capital market space. Stocks like Nuvama and BSE came under pressure as investors digested a fresh regulatory update from SEBI. The change may sound technical on the surface, but its impact was immediate and visible on the screen.
By mid-morning, selling pressure had spread across several capital market stocks, pulling the sector lower and keeping traders cautious.
Market Performance: Capital Market Stocks Under Pressure
Capital market counters slipped sharply during early trade on February 6, reacting to SEBI’s revised margin framework for stock derivatives on expiry day.
At around 11:05 am, the Nifty Capital Markets index was trading 2.2% lower, reflecting broad-based weakness.
Key movers in the sector included:
- Nuvama: down over 3%
- CDSL: down more than 3%
- 360 One WAM: lower by 2.9%
- Kfin Technologies: slipped 2.8%
- Angel One: down around 2%
- BSE share price: lower by nearly 1%
The reaction highlighted how sensitive capital market stocks remain to regulatory changes, especially those linked to derivatives trading.
Main News: What Changed in SEBI’s Margin Rules?
SEBI announced a key update to margin requirements for single-stock derivatives on expiry day through a circular issued on February 5.
The regulator stated that calendar spread margin benefits will not be available on the expiry day for single-stock derivative contracts expiring on that day. This move aligns the treatment of single-stock derivatives with index derivatives.
Importantly, the new rule will come into effect from May 5, 2026, giving market participants time to adjust.
SEBI clarified that margin calculations will remain unchanged for calendar spread positions involving expiries other than the contract expiring on that day.
Understanding Calendar Spread Margin — In Simple Terms
A calendar spread involves holding:
- A longer-term contract, and
- A short-duration contract, matched by the same strike price but carrying a different expiry date.
with the same strike price but different expiries.
Because this structure is hedged, exchanges usually allow lower margin requirements. However, on expiry day, this structure can change suddenly when one leg expires.
SEBI highlighted concerns around the risk created after market close when one side of the position expires, leaving the remaining leg exposed.
What Will Change in Practice?
SEBI explained the impact through expiry-date combinations:
- If contracts expire on the 29th (current month), 30th (next month), and 31st (far month):
- Positions involving 29th & 30th, or 29th & 31st,
will not get calendar spread benefits on the 29th. - Positions involving 30th & 31st
will continue to get the benefit on the 29th.
- Positions involving 29th & 30th, or 29th & 31st,
This adjustment aims to smooth margin transitions and reduce last-minute shocks.
Why SEBI Flagged the Risk?
SEBI noted a structural issue under the current system:
- On expiry day, clients continue to enjoy lower margins till 3:30 pm.
- After market close, one leg expires and margins rise sharply.
- Brokers can only ask for End-of-Day margins once markets are already shut.
This timing gap increases operational and financial risk, especially during volatile market conditions.
The revised rule is designed to give more time during market hours to manage margins, roll over positions, or close trades.
Company-Level Impact: Nuvama and BSE in Focus
Stocks like Nuvama and BSE saw selling pressure as traders reassessed near-term activity in stock derivatives. Any rule affecting trading volumes, margin structures, or intraday strategies tends to reflect quickly in capital market stocks.
The muted movement in BSE share price compared to peers showed selective selling, while sharper cuts in Nuvama highlighted higher sensitivity to derivatives-linked sentiment.
Summary: Why the Market Reacted?
- SEBI revised margin rules for single-stock derivatives on expiry day
- Calendar spread benefits removed on expiry day for contracts expiring that day
- Rule aligns single-stock derivatives with index derivatives
- Changes kick in from May 5, 2026
- Capital market stocks like Nuvama and BSE reacted with immediate declines
For now, the market response reflects caution rather than panic. Regulatory clarity is improving, but until volumes and strategies adjust, capital market stocks may stay sensitive to such updates in the stock market today.
Source: Moneycontrol
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