Review of the position limits available to Stock Brokers / Foreign Portfolio Investors (FPIs) - Category I & II / Mutual Funds (MFs) for stock derivatives contracts
Summary
SEBI modifies position limits for Stock Brokers, FPIs Category I & II, and Mutual Funds in stock derivatives to 20% of the Market Wide Position Limit. The existing Market Wide Position Limit and client-level position limits remain unchanged from previous prescriptions. Stock Exchanges are directed to implement these changes through system updates, rule amendments, and dissemination to market participants.
Text
Review of the position limits available to Stock Brokers / Foreign Portfolio Investors (FPIs) - Category I & II / Mutual Funds (MFs) for stock derivatives contracts
The combined futures and options position limit shall be 20% of the applicable Market Wide Position Limit (MWPL)
The MWPL and client-level position limits would remain the same as prescribed earlier
take necessary steps to put in place systems for implementation of the circular, including necessary amendments to the relevant bye-laws, rules and regulations
bring the provisions of this circular to the notice of the stock brokers and also disseminate the same on their website
communicate to SEBI the status of implementation of the provisions of this circular
This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992
Source: SecMarx — Review of the position limits available to Stock Brokers / Foreign Portfolio Investors (FPIs) - Category I & II / Mutual Funds (MFs) for stock derivatives contracts. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.