The Securities and Exchange Board of India (SEBI) has announced new rules to monitor and restrict intraday positions in equity index derivatives, effective October 1, 2025. The move aims to curb oversized exposures, reduce volatility, and safeguard market integrity.
Under the new framework:
Net intraday position limit: ₹5,000 crore per entity (futures-equivalent basis)
Gross intraday position limit: ₹10,000 crore, aligned with the existing end-of-day cap These changes follow concerns over large speculative trades—especially on options expiry days—that have triggered sharp market swings. SEBI is also acting with greater caution after the alleged manipulation case involving the Jane Street Group.
Monitoring & Compliance
Stock exchanges must capture at least four random snapshots of positions during each trading day, including one between 2:45 PM and 3:30 PM, when expiry-day activity typically spikes.
Exchanges and clearing corporations must submit a standard operating procedure (SOP) for intraday monitoring within 15 days.
Any breaches will require entities to justify their trades. Exchanges will review trading patterns, check activity in underlying index stocks, and escalate cases to SEBI where needed.
Expiry Day Penalties
On expiry days, when speculative pressure is highest, violations will attract penalties or surveillance deposits, jointly decided by exchanges. These penalty provisions will be enforced from December 6, 2025, coinciding with the end of the glide path for position limits.