SEBI re-introduces intraday limits for Index Options trading from October 1, with stricter monitoring
1) The Securities and Exchange Board of India (SEBI) has rolled out a comprehensive framework to monitor intraday positions in equity index derivatives, seeking to curb the risks posed by oversized exposures while preserving liquidity and orderly functioning of the market.
2) According to SEBI’s circular issued late Monday night, the regulator has decided to impose clear intraday position limits for each entity trading in index options.
3) The net intraday position, calculated on a futures-equivalent basis, will be capped at Rs 5,000 crore per entity. The gross intraday position, again on a futures-equivalent basis, will be capped at Rs 10,000 crore, a level that mirrors the existing end-of-day gross limit.
4) The new rules, which will take effect from October 1, 2025, come against the backdrop of rising concern that some participants have been taking disproportionately large positions, particularly on options expiry days, creating volatility and threatening market integrity.
5) All this is for information. Stock on radar -