Framework for Intraday Position Limits Monitoring for Equity Index Derivatives

SEBI, vide its Circular dated September 1, 2025, has introduced a framework for intraday monitoring of position limits in equity index options to strengthen market integrity and risk management. With effect from October 1, 2025 (and from December 6, 2025 for expiry-day penalties), intraday Net FutEq limits are capped at ₹5,000 crores per entity and Gross FutEq limits at ₹10,000 crores, monitored via at least four random snapshots during trading hours (including one near market close). Breaches will invite examination of trading patterns, rationale from clients, and, on expiry days, additional penalties/surveillance deposits. Stock Exchanges and Clearing Corporations must issue an SOP within 15 days to operationalize the framework, which is limited to index options and aims to balance market making, ease of trading, and orderly risk management.

Link: https://www.sebi.gov.in/web/?file=https://www.sebi.gov.in/sebi_data/attachdocs/sep-2025/1756745625835.pdf#page=1&zoom=page-width,-16,792