Sebi May Revise ₹500 Cr Derivative Exposure Limit

The Securities and Exchange Board of India (Sebi) may revise the ₹500-crore exposure or open interest limit each in index futures and options introduced for institutional investors—foreign portfolio investors and mutual funds—after the covid-19 outbreak in March 2020.

- Ram Sahgal & Neha Joshi

MUMBAI:

The markets regulator proposes to change the methodology for measuring open interest (OI), the value of outstanding buy-sell positions, among participants in the derivatives segment. The limit is over and above that set for institutions to hedge their portfolios.

Besides, Sebi plans to link the market-wide position limit (MWPL)—collective positions held by market participants—in single stock futures and options (F&O) to the average daily delivery volumes of the underlying stocks rather than to the notional volumes.