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Institutions: Securities and Exchange Board of India, Ministry of Finance
The Securities and Exchange Board of India (SEBI) has issued a new circular introducing an intraday monitoring framework for equity index derivatives, effective 1 October 2025. The rules set a net intraday position limit of βΉ5,000 crore per entity on a futures-equivalent basis, compared to the earlier end-of-day cap of βΉ1,500 crore. A gross limit of βΉ10,000 crore has also been established separately for long and short positions, mirroring the existing end-of-day threshold. Stock exchanges will be required to take at least four random snapshots of positions during the trading day, including one during the high-activity window between 14:45 and 15:30 IST, to ensure compliance.
The framework is aimed at curbing outsized intraday exposures, particularly on expiry days when speculative trades often surge. Violations on expiry days will attract penalties or additional surveillance deposits from 6 December 2025. By tightening oversight, SEBI intends to strengthen financial stability and investor protection while allowing sufficient liquidity for effective market-making. The move also aligns India with global regulatory practices for derivatives markets.
Relevant question for policy stakeholders: How can SEBI calibrate position limits to reduce speculative excesses without constraining the depth and efficiency of Indiaβs derivatives markets?
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SEBI Circular No. SEBI/HO/MRD/TPD-1/P/CIR/2025/122