1) SEBI has announced changes to position limits and monitoring practices for equity derivatives, particularly index futures and options contracts.
2) Effective immediately, SEBI has increased the position limits for trading members (TMs) in index derivatives. The new limit is set at the higher of Rs 7,500 crore or 15% of the total Open Interest (OI) in the market, up from the previous limit of Rs 500 crore or 15% of total OI.
3) The position limits will be applicable for index futures and index options separately.
4) w.e.f April 1, 2025, SEBI will begin monitoring positions based on the total open interest of the market at the end of the previous day’s trade.
5)This shift from real-time monitoring aligns with the current practice in the currency derivatives segment and aims to address concerns about fluctuations in open interest throughout the trading day.
