
News Topical, Digital Desk : The security market regulator i.e. Securities and Exchange Board of India (SEBI) has implemented a new rule to monitor intraday trading in the stock market. Its purpose is to prevent major risks and keep the market stable. This rule will come into effect from October 1, 2025. This rule will apply only to index options. Most of the trading in the derivatives market takes place in this.
What are the new rules?
- Intraday position limit: The net intraday position (difference between purchase and sale) of any one unit in index options will be limited to Rs 5,000 crore. At the end of the first day, this limit was Rs 1,500 crore.
- Total position limit: The total intraday position for both long and short positions will be limited to Rs 10,000 crore, same as the existing end-of-day limit.
Why is SEBI bringing this new rule?
SEBI says that this framework will make trading easier, strengthen risk management and bring stability to the market. This rule will especially help in preventing very large intraday positions on the expiry day, so that the market can function in an orderly manner.
Why was this step necessary?
SEBI observed that some traders were taking very large positions in index options on expiry day, which was increasing volatility and risk in the market. Recently, SEBI temporarily managed the American hedge fund Jane Street from the market. It manipulated the index by making deals simultaneously in the cash, futures and options market and made huge profits.
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