Archive · 7 Sep 2025
SEBI Tightens Rules on Index Options Trading
SEBI, the market regulator, is introducing rules to limit how much traders can bet on the stock market each day.
This follows the Jane Street case, which raised concerns about market manipulation.
Traders now have limits on their bets, and stock exchanges must monitor trading activity, especially near the end of the day.
SEBI aims to prevent large problems in the market by setting rules for intraday positions.
This is meant to stop traders from making big, risky bets.
Stock exchanges must keep an eye on traders, but SEBI needs to watch them too to make sure the rules are followed.
SEBI implements intraday position limits in index options trading.
Net intraday position limit set at ₹5,000 crore; gross limit at ₹10,000 crore.
Stock exchanges are responsible for monitoring trading positions.
Focus on surveillance in the last hour of trading.
SEBI should consider extending limits to other market segments.
- Who
- Securities and Exchange Board of India (SEBI)
- What
- Implemented intraday position limits in index options trading.
- When
- Effective immediately.
- Where
- Indian equity derivatives market.
- Why
- To curb price manipulation, especially in index options.
- Policy Change
- SEBI implements intraday position limits for index options.
- Net Position Limit
- ₹5,000 crore per trader
- Gross Position Limit
- ₹10,000 crore
- Exchange Responsibilities
- Monitor positions at least four times daily.
- Monitoring Focus
- Last hour of trading.
- Broader application
- SEBI should consider limits in other segments.
