Sebi considers revising ₹500 crore derivative exposure limit for institutional investors

The Securities and Exchange Board of India (Sebi) is considering changes to the ₹500 crore exposure limit for institutional investors in index futures and options. This limit was introduced during the COVID-19 pandemic to manage market volatility. Sebi plans to revise how open interest is measured, moving from a notional volume approach to a delta-based metric. This change aims to better reflect risk and align with global practices. Additionally, Sebi intends to adjust the market-wide position limit for single stock futures and options, linking it to average daily delivery volumes instead of notional volumes. These changes follow previous measures to address retail trading volatility.