SEBI raises surveillance measures to check volatility in F&O segment

In a recently released circular, the Securities and Exchange Board of India (SEBI) has announced a new framework for intraday position limits for equity index derivatives.

The new framework caps intraday net positions in index options at Rs 5,000 crore per entity, versus an end-of-day cap of Rs 1,500 crore. Gross intraday exposure has been set at Rs 10,000 crore each for long and short positions.

Stock exchanges will monitor compliance using at least four random snapshots during the trading day, including one between 2.45 pm and 3.30 pm, when trading activity typically peaks, it added.

The newly released framework will take effect from 01 October 2025.

SEBI has stepped up surveillance measures in the derivatives segment to curb excessive volatility and speculation. It has permitted higher position limits with the condition of additional margin requirements. This effectively raises the cost of trading for those seeking extra exposure, while simultaneously reducing overall market risk.

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