SEBI issues new rules for monitoring intraday derivative positions

The Securities and Exchange Board of India (SEBI) late on Monday (September 1, 2025) issued fresh rules for monitoring intraday positions in equity derivatives.

The markets regulator has been reassessing the rules for equity derivatives after it temporarily banned U.S. high-frequency trading firm Jane Street from the Indian markets, saying some of its trading strategies were manipulative and left retail investors with losses.

The new framework, which will take effect from October 1, sets an intraday net position limit of ₹5,000 crore per entity in index options, compared with an end-of-day limit of ₹1,500.

Gross intraday exposure has been capped at ₹10,000 crore, applied separately to long and short positions, according to SEBI’s statement.

Stock exchanges will monitor compliance using at least four random snapshots during the trading day, including one between 2.45 p.m. and 3.30 p.m., when trading activity typically peaks, it added.

For entities breaching the limits, stock exchanges will examine trading patterns and seek an explanation for such positions.

Breach of the limits on the day of contract derivative expiry will attract a penalty, SEBI said, adding that the quantum of penalty will be decided by stock exchanges.