SEBI is considering relaxing proposed limits on trading in Index Options, with a likely net end of the day limit of Rs 1,500 crore and a gross limit of Rs 10,000 crore for each side.
Intraday trading in index options may be exempt from any cap, with surveillance protocols monitoring intraday positions up to four times a day to prevent manipulation.
SEBI's decision to reconsider the limits follows a review of public comments, distinguishing between long-term regulatory policy and immediate market surveillance needs.
The regulator is contemplating a delta-based open interest metric instead of the traditional notional method, aiming for a more accurate representation of options trades' economic exposure.