Current Limitations: Previously, the overall position limit at the Trading Member (TM) level (for both proprietary and client positions) was set at the higher of INR 500 crores or 15% of total Open Interest (OI) in the market. These limits applied separately for open positions in futures and options contracts on any underlying index.
Revised Position Limits:Based on feedback from the market and deliberations with the Secondary Market Advisory Committee (SMAC), the position limits for TMs (cumulatively for client and proprietary trades) have been increased to the higher of INR 7,500 crores or 15% of total OI in the market.
These limits will continue to apply separately to index futures and index options contracts.
Monitoring of Open Interest:
From April 1, 2025, market participants’ positions in the equity derivatives segment will be monitored based on the total market OI at the end of the previous trading day.
If market OI drops compared to the previous day, market participants could breach the new limits passively, without adjusting their positions. No penalties or unwinding of positions will be required in such cases of passive breaches.
Implementation:
The new position limits will take effect immediately.
The monitoring of market participants’ positions based on the previous day’s OI will be implemented from April 1, 2025.
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