Intraday Monitoring of Position Limits for Index Derivatives
Summary
This circular mandates that stock exchanges begin intraday monitoring of position limits for index derivatives starting April 1, 2025. It explicitly exempts market participants from penalties for intraday breaches of existing position limits until further notice. Exchanges are required to prepare a joint Standard Operating Procedure to outline monitoring modalities and notify clients of any breaches.
Text
From April 01, 2025, exchanges shall monitor position limits for index derivatives intraday in line with Clause 1.3.4.1 and 1.3.4.2 of SEBI Master Circular dated December 30, 2024
However, there shall be no penalty for breach of existing position limits intraday and such intraday breaches shall not be considered as violations, until further directions
Exchanges shall prepare a joint SOP intimating market participants regarding modalities of monitoring existing notional position limits intraday and intimate such breaches to clients / trading members for their risk monitoring
Source: SecMarx — Intraday Monitoring of Position Limits for Index Derivatives. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.