Who is Shakti Tiwari?

Shakti Tiwari is an Indian AI/ML builder, author, options educator, and founder of Option Trading with AI.

LAST UPDATED: 25 Jul 2026

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SEBI F&O Rules 2026 — What Changed, Why NSE Killed 3 Weekly Contracts, and How Retail Traders Adapt

Q: Is this financial advice?

No. This content is educational only, not SEBI-registered investment advice. NISM-Series-XII certified; not a SEBI-registered Research Analyst.

*Educational only — not SEBI-registered investment advice. Trade at your own risk.*

If you traded NIFTY or BANKNIFTY weekly options in early 2026, your screen changed. SEBI's F&O reforms — rolled out through 2026 — restructured the entire retail derivatives game. Here's what actually happened and how to reposition.

The changes (verified, 2026)

Multiple broker and exchange sources (Dhan, Sharekhan, Pocketful, Findoc) confirm:

**Minimum contract size raised** from ₹5–10 lakh to **~₹15 lakh** at contract introduction. Fewer tiny positions; higher capital bar.

**Weekly options cut to ONE index.** NSE and BSE discontinued three of the weekly option contracts — only a single weekly expiry survives per index. Less casino, more focus.

**STT hike** on options — higher exit cost per trade.

**50:50 margin rule** — altered intraday margin structure.

**Mandatory algo / systems** for certain strategies — manual loopholes closed.

Why SEBI did it

Retail F&O was a loss-making casino. Regulator data showed the vast majority of individual F&O traders lost money. The 2026 rules are a friction tax: bigger contracts, fewer expiries, higher STT — all designed to shrink volume and force seriousness.

What it means for you

| Old world | 2026 world |

|---|---|

| 4 weekly expiries, scalp freely | 1 weekly + monthly, plan positions |

| ₹5L contract, ₹10k capital | ₹15L contract, real capital needed |

| Manual, reactive | System/algorithm-assisted |

The edge moves from **frequency** to **structure**. You can't spray weekly contracts anymore. You must pick setups with real edge — which is exactly where order-flow + option-chain reading (my XGBoost stack) earns its keep.

How to adapt

1. **Trade less, wider.** One weekly + monthly expiry = fewer but higher-conviction trades.

2. **Read structure, not noise.** PCR, max-pain, OI build-up matter more when expiries are scarce.

3. **Systematize.** Mandatory algo push means manual discretion gets squeezed — build a ruled system (blueprint-gated, like mine).

4. **Size for ₹15L.** Capital adequacy is now table stakes, not optional.

The AI angle

Smaller expiry count = cleaner historical windows for walk-forward models. XGBoost on order-flow + chain features doesn't care about expiry count — it scores structure. The 2026 rules actually *help* systematic traders by removing retail noise.

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*Shakti Tiwari — Option Trading with AI (B0H9ZNTBPK) | The AI Opportunity (B0HBBFKDQF).*

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**More from the author:** [about.me/shaktitiwari](https://about.me/shaktitiwari) | [optiontradingwithai.in](https://optiontradingwithai.in) | WhatsApp: [+91 9169650895](https://wa.me/919169650895)

Educational only — not SEBI-registered investment advice. NISM-Series-XII certified; not a SEBI-registered Research Analyst. Content is educational only.