Regulatory Alerts2025-09-01
Framework for Intraday Position Limits Monitoring for Equity Index Derivatives
The Securities and Exchange Board of India (SEBI) has established entity-level intraday position limits for index options to address market integrity risks associated with outsized positions on contract expiry days. The framework mandates a Net Future Equivalent limit of ₹5,000 crores and a Gross Future Equivalent limit of ₹10,000 crores per entity, monitored via minimum four random snapshots daily by Stock Exchanges. Market Infrastructure Institutions must submit a joint Standard Operating Procedure within 15 days, with the core provisions becoming effective on October 1, 2025, and expiry-day penalties taking effect on December 6, 2025.
Share