Sebi Boosts F&O Trading Limits: Now Hold Over ₹7,500 Crore or 15% of Market Open Interest!

The Securities and Exchange Board of India (Sebi) has increased the position limits for trading members in index Futures & Options (F&O) contracts. Now, traders can hold positions worth up to 15% of the total open interest (OI) in the market or over ₹7,500 crore, whichever is higher.

These limits are outlined in Sebi’s Master Circular on Stock Exchanges and Clearing Corporations (SECC), issued on October 16, 2023. It sets the overall limit for trading members (both for their own and clients’ trades combined) at either ₹500 crore or 15% of the total market open interest.

The new position limits apply to both index futures and index options, and Sebi will monitor the equity derivatives market based on the total open interest at the end of the previous trading day.

Sebi has also clarified that if the total market open interest drops during the day, traders might unknowingly exceed their allowed limit even if they didn’t change their positions. In such cases, they won’t face penalties or be forced to reduce their positions.

The new rules on raising position limits are effective immediately, while the changes regarding position limits based on market OI will come into effect from April 1, 2025.