In March 2025, Mumbai (Maharashtra)-based market regulator, Securities Exchange Board of India (SEBI) issued new guidelines for monitoring of intraday position limits for exchanges and clearing corporations (CCs).
- As per the new norms, stock exchanges will monitor position limits for index derivatives on an intraday basis, with effect from April 1, 2025.
- Also, SEBI has clarified that no penalties will be imposed for breaching existing position limits during the trading day until further notice.
- These guidelines were issued by SEBI through a circular in exercise of powers given under Section 11 (1) read with Section 11 (2) (a) of the SEBI Act, 1992 read with Regulation 51 of Stock Exchanges and Clearing Corporations (SECC) Regulations, 2018, to safeguard the interests of investors in securities and to promote the development of, and to regulate the securities market.
Key Points:
i.SEBI has retained directive issued in its previous circular on December 30, which allowed the stock exchanges to monitor these positions by considering minimum 4 snapshots of market positions during the trading day. The snapshots will be randomly taken during pre-defined time windows.
ii.Sebi proposed new position limits for index derivatives to better reflect actual market risks.
- For index options, the end-of-day limits are set at Rs 500 crore (net) and Rs 1,500 crore (gross), while intra-day limits are Rs 1,000 crore (net) and Rs 2,500 crore (gross).
- For index futures, the end-of-day limit has been increased from Rs 500 crore to Rs 1,500 crore, with an intra-day limit of Rs 2,500 crore.
iii. Stock exchanges like Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have been instructed by SEBI, to jointly prepare a Standard Operating Procedure (SOP) informing the market participants regarding modalities of monitoring existing notional position limits intraday.
- Also, these exchanges are required to inform clients/trading members about the breaches for their risk monitoring.
SEBI Extended Time for Regulated Entities to Adopt Cyber Security Framework to 3 Months
In March 2025, SEBI has extended the deadline for Regulated Entities (REs) which comes under its purview such as Alternative Investment Funds (AIF), depositories, Credit Rating Agencies (CRAs), among others, to adopt Cybersecurity and Cyber Resilience Framework (CSCRF) until June 30, 2025, a 3-month extension from the original date.
- This announcement was made by SEBI through a circular issued in exercise of powers given under Section 11 (1) of the SEBI Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
- All provisions of this circular came into force with immediate effect.
Note: In August 2024, SEBI introduced CSCRF, aimed to strengthen the financial sector’s defense against cyber threats.
Key Points:
i.This new timeline has not been extended for some entities such as: Market Infrastructure Institutions (MIIs), Know Your Customer (KYC) registration agencies (KRAs), and Qualified Registrars (QRs). These entities will comply with original deadline of March 30, 2025.
ii.As per SEBI’s circular, stock exchanges and depositories have been directed to intimate their members and ensure widespread awareness of the revised compliance deadline.
Recent Related News:
In February 2025, SEBI introduced new framework for Specialized Investment Fund (SIF), the new category of investment product, which aimed to fix gaps between Mutual Funds (MFs) and Portfolio Management Services (PMS) in terms of portfolio flexibility.
- The new framework will come into force with effect from April 1, 2025.
- SEBI has further directed the Association of Mutual Funds in India (AMFI) to issue necessary guidelines and standards for SIF by March 31, 2025.
