Mumbai, Sep 30, 2025

The Securities and Exchange Board of India (SEBI) has announced that it will implement stricter position limits in derivatives trading, enhanced monitoring and revised norms for position in a stock during the ban period, effective from October 1.

The new measures aim to reduce excessive speculation and align risk with the underlying cash market activity.

The market-wide position limit or the maximum number of bets allowed will now be linked to the cash volume and free float of the scrip and has been fixed as the lower of 15 per cent of free float or 65 times of cash volume across exchanges, the markets regulator said.

SEBI informed that Market Wide Position Limit (MWPL) will be updated quarterly based on rolling cash volume data. SEBI expects that tying the MWPL to

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