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SEBI Introduces Revised Framework for Monitoring Intraday Trading Positions in Index Options from October 2025.

Banking & Finance | Dated: 04 Sep 2025

In September 2025, the Securities and Exchange Board of India (SEBI) introduced a revised regulatory framework to monitor intraday trading positions in index options. The move aims to improve transparency, enhance surveillance, and strengthen risk management in India’s derivatives markets.

🎯 Key Highlights:

  • - The new framework will officially take effect from October 1, 2025, with penalty provisions for breaches of trading limits becoming effective from December 6, 2025. It introduces tighter position caps and mandatory monitoring of traders’ intraday activities across stock exchanges.
  • - As per the revised guidelines, the intraday net position limit, calculated on a Future-Equivalent (FutEQ) basis after adjusting for long and short contracts, has been capped at ₹5,000 crore per entity. This is a significant reduction from the earlier threshold of ₹15,000 crore per entity in index options.
  • - The gross intraday position limit remains unchanged at ₹10,000 crore per entity, ensuring consistency with the existing end-of-day gross exposure rules. This limit applies uniformly across participants and is aimed at curbing excessive speculative exposure.

💡 Other Important Facts:

  • (i) SEBI has also mandated stock exchanges to capture at least four random intraday snapshots of traders’ positions during market hours. These snapshots will include at least one taken between 2:45 pm and 3:30 pm, a period when trading volumes and volatility are typically at their highest.
  • (ii) Entities that breach these new trading limits will face penalties and may be subject to closer scrutiny by stock exchanges. Penalties could include restrictions on trading activity, increased surveillance deposits, or settlement-related fines to prevent systemic risks.
  • (iii) Further, SEBI has directed all Market Infrastructure Institutions (MIIs), including stock exchanges and clearing corporations, to publish a Standard Operating Procedure (SOP) for compliance. MIIs must also submit this SOP to SEBI within 15 days, ensuring timely adoption of the framework by market participants.

📚 Test Your Knowledge:

The Securities and Exchange Board of India (SEBI) has recently introduced a revised framework to monitor intraday trading positions in which segment?

Correct Answer: Index Options

🚀 Quick Recap:

About SEBI

  • Chairman : Tuhin Kanta Pandey
  • Headquarter : Mumbai