SEBI Increases Position Limits for Trading Members

The Securities and Exchange Board of India (SEBI) has raised the position limits for Trading Members in index futures and options to Rs 7,500 crore or 15% of total open interest. This change, effective immediately, stipulates monitoring based on the previous day's market open interest, starting April 2025.

The Securities and Exchange Board of India (SEBI) announced on Tuesday a significant increase in position limits for Trading Members in index futures and options trading. The new cap is set at the higher of Rs 7,500 crore or 15% of the total open interest in the market.

This adjustment in position limits applies separately to index futures and index options, according to a circular issued by SEBI. Previously, the general position limit for trading members, including both proprietary and client trades, was Rs 500 crore or 15% of the total market open interest.

SEBI noted that market and participant open interest figures are constantly changing, impacting the positions within the equity derivatives segment. The monitoring based on these figures from the previous day's trade will commence on April 1, 2025, allowing participants to handle passive breaches without penalty if market open interest falls.

(With inputs from agencies.)