SEBI revises rules for intraday index options, raises limit to ₹5,000 crore

The Securities and Exchange Board of India (SEBI) has raised the intraday net position limit for index options to ₹5,000 crore per entity, up from ₹1,500 crore earlier, calculated on the basis of the new futures-equivalent (FutEq) framework after offsetting long and short trades.

The gross position limit of ₹10,000 crore has been maintained, separately applicable to the long and short sides. The markets regulator has also tightened monitoring norms for exchanges for such large speculative bets. 

The changes come in response to instances of outsized intraday positions, particularly on contract expiry days, and SEBI’s scrutiny of high-frequency trading firm Jane Street, over aggressive expiry-day trades.

Stock exchanges are directed to conduct at least four random checks of traders’ positions during the trading session. One snapshot must be taken between 2:45 p.m. and 3:30 p.m., a period when trading activity typically peaks due to expiry-related adjustments. The value of positions will be calculated using the underlying index price at the time of each snapshot.

Entities breaching the limits will face tighter scrutiny as exchanges may call for explanations, review trading patterns in index constituents, and report such cases to SEBI for further surveillance. On expiry days, violations could attract penalties or additional surveillance deposits—effective from December 6, 2025.

However, traders will still be allowed to take additional exposure backed by sufficient collateral in the form of cash or securities, consistent with earlier rules. These new norms apply only to index options, such as Nifty and Bank Nifty contracts, and not to single-stock derivatives. 

Exchanges and clearing corporations have been directed to publish a joint standard operating procedure within 15 days to guide market participants.

Published on September 2, 2025