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Corporate Laws Central Ministry of Finance Securities Contracts (Regulation) Act, 1956

Framework for Intraday Position Limits Monitoring for Equity Index Derivatives

01-Sep-2025 | SEBI/HO/MRD/TPD/CIR/P/2025/122

SEBI has issued a circular regarding Framework for Intraday Position Limits Monitoring for Equity Index Derivatives effective from 1st October, 2025. By virtue of this circular, SEBI has announced the implementation of an entity-level intraday monitoring framework for index options to ensure market stability, while continuing to facilitate participation from various market participants, including liquidity providers and market makers. The key features of the framework are as follows: 1. Intraday Net Position Limit (on a Future Equivalent [FutEq] basis): Each entity shall have an intraday net position limit of ?5,000 crore (compared to the end-of-day limit of ?1,500 crore). 2. Intraday Gross Position Limit (FutEq basis): Each entity shall have an intraday gross position limit of ?10,000 crore - separately on both the long and short sides - which is the same as the current end-of-day limit. 3. Monitoring Mechanism: Stock exchanges shall monitor these intraday limits through a minimum of four random snapshots during the trading day. 4. Objective: The framework aims to support continuous market-making activity on all trading days and to place checks on the creation of outsized intraday positions, particularly on expiry days, to promote orderly trading. 5. Scope: The framework is applicable only to index options. Stock Exchanges and Clearing Corporations are advised to jointly prepare a Standard Operating Procedure (SOP) outlining the modalities for intraday monitoring. This SOP must be submitted to SEBI within 15 days from the date of this circular and subsequently issued to market participants. For further details, kindly refer to the attached document.

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