SEBI/HO/MRD/TPD/CIR/P/2025/ 122 — THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

CIRCULAR SEBI/HO/MRD/TPD/CIR/P/2025/ 122 September 01, 2025 To, All Stock Exchanges , All Clearing Corporations , All Depositories , Dear Sir/ Madam, Sub: Framework for Intraday Position Limits Monitoring for Equity Index Derivatives SEBI consultation paper dated February 24, 2025 on 'Enhancing Trading Convenience and Strengthening Risk Monitoring in Equity Derivatives', proposed the following Future Equivalent (FutEq) or delta equivalent positions limits for index options: On the basis of feedback received from market participants and subsequent deliberations in Secondary Market Advisory Committee (SMAC) of SEBI as well as with Market Infrastructure Institutions (MIIs), following was stipulated for position limits for index options (Para 5.5 of SEBI circular SEBI/HO/MRD/TPD-1/P/CIR/2025/79 dated May 29, 2025): On the basis of observed instances of outsized intraday FutEq positions created by certain entities in index options on the day of contract expiry and the risks to market integrity thereof, discussions were held with Stock Exchanges to strengthen the intraday monitoring framework for index options. In view of the aforesaid discussions and after deliberations in SMAC , it is decided to implement the following entity level intraday monitoring framework for index options to ensure market stability, while facilitating participation by various market participants including liquidity providers / market makers: 4.1.Intraday Net position limit (FutEq basis) for each entity shall be ₹5,000 cr. (as against end of day limit of ₹1,500 cr). 4.2.Intraday Gross position limit (FutEq basis) for each entity shall be ₹10,000 cr. (i.e. separately both on long and short sides), same as the present end of day limit . 4.3.The aforesaid intraday limits shall continue to be monitored by