No penalty for breach of existing position limits intra-day: Sebi

SEBI ON FRIDAY asked the stock exchanges to monitor the existing position limits for index derivatives on an intra-day basis from April 1, but there will be no penalties for breaching these limits until further notice.

- PRESS TRUST OF INDIA

The regulator has also directed the exchanges to prepare a joint standard operating procedure (SOP) intimating market participants regarding modalities of monitoring existing notional position limits intra-day and intimate such breaches to clients or trading members for their risk monitoring.

From April 1, 2025, the exchanges will monitor position limits for index derivatives intra-day, Sebi said in a circular. "However, there shall be no penalty for breach of existing position limits intra-day and such intraday breaches shall not be considered as violations, until further directions."

The decision came after the industry associations have raised concerns pertaining to the readiness of systems at the end of stock brokers and their clients to monitor existing position limits intra-day for index derivatives.