SEBI Intraday Position Limits for Equity Index Options Explained
Why in the news
On 2 September 2025 SEBI announced a framework to watch intraday exposure in index options, starting 1 October 2025, to curb risky expiry-day bets.
Key facts
- Net intraday limit: ₹5,000 crore per entity (futures-equivalent basis); earlier only a ₹1,500 crore end-of-day cap.
- Gross intraday limit: ₹10,000 crore per side, unchanged.
- Snapshots: at least four random checks daily, one in the 2:45-3:30 pm window.
- Penalties or extra surveillance deposits: expiry-day breaches from 6 December 2025.
- Higher limits for entities with underlying exposure above ₹5,000 crore.
- Exchanges to issue a joint SOP within 15 days.
| Point | Net | Gross |
|---|---|---|
| Formula | Long minus short | Long plus short |
| Example | ₹7,000 cr long, ₹2,000 cr short gives ₹5,000 cr | Same gives ₹9,000 cr |
| Status | New | Already applicable |
Background
- Monitoring uses the FutEq (delta-based) method from SEBI’s May circular; it misses gamma and vega risks.
- Follows NSE moving weekly expiry to Tuesday and BSE to Thursday.
- Triggered by the Jane Street case: alleged Bank Nifty manipulation, gains of ₹4,843.57 crore.
Exam angle
- Effective: 1 October 2025.
- Net ₹5,000 crore vs gross ₹10,000 crore per side.