SEBI Raises Position Limit For Trading Members In Index Futures And Options To Rs 7,500 Crore

The new position limits are effective immediately, and monitoring based on the previous day's OI will start from April 1, 2025.

PTI

The position limits are separately applicable for index futures and index options, SEBI said in a circular.

The SEBI headquarters in Mumbai. (Source: NDTV Profit)

Markets regulator SEBI on Tuesday said the position limit for Trading Members across client and proprietary trades in index futures and options will now be higher of Rs 7,500 crore or 15% of total open interest in the market.

The position limits are separately applicable for index futures and index options, the Securities and Exchange Board of India said in a circular.

Before this, the overall position limit at the trading member level (proprietary and client) is higher of Rs 500 crore or 15% of the total Open Interest in the market.

Also Read: Hero Motors May Have Withdrawn DRHP Due To Lack Of Disclosures To SEBI

Noting that the open interest of both the participants and the market is dynamic and changing throughout the day, SEBI said that the positions of market participants in the equity derivatives segment will now be monitored based on the total open interest of the market at the end of the previous day's trade.

If market open interest drops the next day, participants may exceed their limits even if their positions remain unchanged. For such cases of passive breaches, market participants would not be penalised and not be required to unwind their positions.

The new position limits are effective immediately, and monitoring based on the previous day's OI will start from April 1, 2025.

Also Read: Anil Ambani, Others Appeal Against SEBI's Rs 625 Crore Penalty Directive

Watch LIVE TV , Get Stock Market Updates, Top Business , IPO and Latest News on NDTV Profit.
GET REGULAR UPDATES