Sebi's New Position Limits for Equity Derivatives Set for Review
Sebi's Secondary Market Advisory Committee is poised to reevaluate position limits for brokers in the equity derivatives sector. The committee will also discuss governance enhancements for Market Infrastructure Institutions and potential reforms in mutual fund and investor protection fund management.
- Country:
- India
The Securities and Exchange Board of India's (Sebi) Secondary Market Advisory Committee (SMAC) is expected to convene on Tuesday to appraise position limits for brokers in the equity derivatives market. The move seeks to introduce fresh intraday limits for equity index derivatives, informed sources disclose.
Currently, the position limits for trading members in equity index futures stand at over Rs 7,500 crore, or 15% of the total market open interest. In February, Sebi proposed adjustments to these limits to enhance risk assessment in the derivatives sector, reflecting actual market risk more effectively.
Further deliberations will focus on strengthening the governance of Market Infrastructure Institutions, including stock exchanges and depositories. Discussions will cover executive roles within MIIs and could lead to a systematic withdrawal and transfer facility for mutual fund investors in demat form, as well as reforms in managing Investor Protection Funds.
(With inputs from agencies.)
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