Upgraded 22 August 2025 at 17:07 IST
SEBI is thinking about a Rs 1,500 crore cap on intraday equity index acquired positions to suppress market dangers. The proposition, targeted at avoiding excess speculation and guaranteeing reasonable play, follows issues over manipulative trading methods and retail financier losses.
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The relocation follows issues that specific trading techniques utilized by international high-frequency companies have actually misshaped market fairness, resulting in retail financier losses.|Image: jane street/sebi
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The Securities and Exchange Board of India (SEBI) is weighing a fresh cap of Rs 1,500 crore on net intraday positions in equity index derivatives, as part of its continuous effort to tighten up oversight of the derivatives market, according to a report by Reuters. The relocation follows issues that specific trading methods used by worldwide high-frequency companies have actually misshaped market fairness, causing retail financier losses.
According to Reuters, which mentioned individuals acquainted with the matter, the proposition was just recently talked about at a conference of SEBI’s Secondary Market Advisory Committee, which recommends on equity market policies. The suggestion has actually now been forwarded to SEBI’s board for last approval. SEBI has actually not yet released a main declaration on the matter.
Previously this year, SEBI drifted the concept of setting a Rs 10,000 crore ceiling on net intraday index acquired positions. The strategy was shelved after resistance from big market-making companies, triggering the regulator to rather direct exchanges to keep track of companies’ direct exposures more carefully.
Information evaluated by the regulator exposed that on expiration days of index agreements, intraday positions frequently far go beyond end-of-day limitations, highlighting the requirement for specified intraday limits. At present, entities are enabled an end-of-day net cap of Rs 15,000 crore and a gross position of approximately Rs 1 lakh crore.
A clear standard, authorities state, will likewise assist exchanges act decisively. “A regulative limitation will indicate precisely when to enforce charges,” one source described. Breaches of intraday limitations, particularly on agreement expiration days, are anticipated to draw in fines, with exchanges needed to report offenses to SEBI.
The committee has actually even more encouraged tightening up oversight of trades performed by linked foreign entities, which frequently run through intermediaries. While particular limitations are yet to be settled, the regulator is eager to plug spaces that permit extreme speculation to go unattended.