In a move to make the stock market safer and more stable, SEBI (Securities and Exchange Board of India) has rolled out new rules to keep a closer eye on intra-day trading in equity index derivatives. These updates aim to prevent big trading bets that could cause market jitters and ensure everything stays transparent and fair.
Starting October 1, traders will face clear limits on how much they can hold in intra-day positions. Each trading entity will be restricted to a net intra-day position of Rs 5,000 crore. This means they can’t carry positions exceeding this limit during a single trading day. Additionally, the total gross intra-day position will be capped at Rs 10,000 crore—matching the current end-of-day maximum.
Why these new rules? SEBI is stepping up its monitoring because of recent worries about traders taking large, risky positions—especially on options expiry days, which can cause sudden market swings and instability. These concerns grew after reports of potential market manipulation linked to firms like Jane Street Group.
To keep close watch, stock exchanges will now need to take at least four random snapshots of traders’ positions throughout the trading session. One of these checks must happen between 2:45 PM and 3:30 PM, a critical period when many traders settle their positions before the market closes.
SEBI also ordered stock exchanges and clearing houses to work together and develop a standard process for intraday surveillance. They must submit this plan within 15 days. If traders go beyond the set limits, exchanges will investigate their trading patterns, ask clients for explanations, and analyze trading activities in the index. These details will be reviewed in surveillance meetings with SEBI.
On options expiry days, when market activity is usually intense, any violations will attract penalties or mandatory deposits to ensure compliance. These penalty rules will start from December 6, 2025, aligning with the final phase of implementing position limits.
Overall, these steps show SEBI’s commitment to making Indian stock markets safer, reducing risks, and promoting transparent trading for all investors.
