The Securities and Exchange Board of India (SEBI) has introduced new position limits for trading members in index futures and options contracts. The new rules come into effect immediately, with the limits being set at the higher of ₹7,500 crore or 15% of the market’s open interest.
Key Highlights:
- Trading members’ position limits in index future and option contracts will be set at the higher of ₹7,500 crore or 15% of the market’s open interest.
- These limits apply separately to both index futures and options.
- Positions will now be checked against the previous day’s open interest to ensure compliance.
- There will be no penalties for breaches caused by changes in market conditions.
- While the rules are effective immediately, enhanced monitoring changes will take effect in April 2025.
This move aims to enhance transparency and risk management in derivatives trading, while providing flexibility for market participants.
TOPICS:
SEBI