The Securities and Exchange Board of India (SEBI) has introduced a detailed framework to regulate intraday positions in equity index derivatives, aiming to limit excessive exposures while maintaining market liquidity and stability. As per a circular issued late Monday, SEBI will enforce specific intraday position limits per entity trading in index options.
From October 1, 2025, net intraday positions, on a futures-equivalent basis, will be capped at ₹5,000 crore, while gross intraday positions will be limited to ₹10,000 crore, aligning with existing end-of-day gross limits. This move addresses growing concerns about traders taking disproportionately large positions, particularly on options expiry days, which could heighten volatility.
Stock exchanges must monitor intraday positions through at least four random checks during trading hours, with one mandatory check between 2:45 PM and 3:30 PM. Violations will lead to scrutiny of trading patterns, rationale, and index constituent activity, with reports submitted to SEBI.
SEBI clarified that the aim is not to hinder genuine hedging or market-making, but to ensure fair and orderly trading. Penalty provisions for expiry-day breaches will take effect from December 6, 2025, following the position limit glide path.