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SEBI Sets Phased Risk Controls for Equity Futures and Options

Changes will be phased through December to introduce a delta-based open interest metric, liquidity-tied position limits, intraday MWPL monitoring, extended pre-open sessions, eligibility rules for index derivatives.

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Overview

  • A delta-based “Future Equivalent” (FutEq) method will replace notional open interest to align derivatives exposure with underlying price sensitivity.
  • From October, market-wide position limits for single-stock F&O will be tied to the lower of 15% of free float or 65× average daily delivery value, with exchanges conducting random intraday checks.
  • Trading in a stock’s derivatives during ban periods will be permitted only if positions reduce net FutEq open interest by the end of the trading day.
  • Starting July 1, index futures and options limits will rise to a net FutEq OI cap of ₹1,500 crore and a gross cap of ₹10,000 crore per PAN to ease institutional trading constraints.
  • By December 6, SEBI will extend pre-open sessions to F&O contracts and enforce eligibility criteria requiring at least 14 index constituents with capped weights for non-benchmark derivatives.