Finance Desk – The Securities and Exchange Board of India (SEBI) has announced fresh rules to monitor intraday positions in equity derivatives, effective from October 1, 2025.
The move comes after SEBI temporarily banned U.S. high-frequency trading firm Jane Street from Indian markets, alleging that some of its trading strategies were manipulative and harmed retail investors.
Key Changes in the New Rules
Intraday Net Position Limit: Capped at ₹5,000 crore per entity in index options, compared to the current end-of-day limit of ₹1,500 crore.
Gross Intraday Exposure: Limited to ₹10,000 crore, calculated separately for long and short positions.
Monitoring: Stock exchanges will track compliance using at least four random checks during the trading day, including one snapshot between 2:45 PM and 3:30 PM, when trading activity peaks.
Penalty on Breach: If the limits are exceeded, especially on the contract expiry day, exchanges will review trading patterns, seek explanations, and impose penalties.
SEBI says these measures aim to bring tighter control over intraday trading risks and ensure market stability.
