| Market
Level |
There
is no market wide position limits specified
for index futures or Options contracts. |
There
is no market wide position limits specified
for index futures or Options contracts |
**The
market wide position limit for single stock
futures and stock option contracts shall be
linked to the free float market capitalization
and shall be equal to 20% of the number of shares
held by non-promoters in the relevant underlying
security (i.e., free-float holding). This limit
would be applicable on aggregate open positions
in all futures and all option contracts on a
particular underlying stock. |
| *Trading
Member, Mutual Fund and FPI Category I |
Rs.500
crores or 15 % of the total open interest of
the market in index futures, whichever is higher |
Rs.500
crores or 15 % of the total open interest of
the market in index options, whichever is higher |
20%
of the applicable Market Wide Position Limit
per Exchange Derivatives |
| Client
Level, NRI, Sub Accounts |
A
self-disclosure requirement similar to that
in the take-over regulations is prescribed as
under:
Any person or persons acting in concert who
together own 15% or more of the open interest
shall be required to report this fact to the
exchange and failure to do so shall attract
a penalty as laid down by the exchange / clearing
corporation / SEBI
|
A
self-disclosure requirement similar to that
in the take-over regulations is prescribed as
under:
Any person or persons acting in concert who
together own 15% or more of the open interest
shall be required to report this fact to the
exchange and failure to do so shall attract
a penalty as laid down by the exchange / clearing
corporation / SEBI.
|
The
gross open position across all derivative contracts
on a particular underlying stock should not
exceed the higher of:
1% of the free float market capitalization (in
terms of number of shares). or 5% of the open
interest in the derivative contracts on a particular
underlying stock (in terms of number of contracts).
|
| FPI
Category II (other than individuals, family
offices and corporates) |
Rs.300
crores or 10 % of the total open interest of
the market in index futures, whichever is higher
|
Rs.300
crores or 10 % of the total open interest of
the market in index options, whichever is higher |
10%
of the applicable Market Wide Position Limit
per Exchange
|
| FPI
Category II (individuals, family offices and
corporates) |
Rs.100
crores or 5 % of the total open interest of
the market in index futures, whichever is higher
|
Rs.100
crores or 5 % of the total open interest of
the market in index options, whichever is higher
|
5%
of the applicable Market Wide Position Limit
per Exchange |
|
*Additional Limits for Index derivatives in case
of FPI Category (I)
a. Short positions in index derivatives (short futures,
short calls and long puts) not exceeding (in notional
value) the FPI Category (I) holding of stocks.
b. Long positions in index derivatives (long futures,
long calls and short puts) not exceeding (in notional
value) the FPI Category (I) holding of cash, government
securities, T-Bills, money market mutual funds and gilt
funds and similar instruments.
If the open position of an FPI Category (I) exceeds the
index futures or options limits, such surplus would be
deemed to comprise of short and long positions in the
same proportion of the total open positions individually.
Such short and long positions in excess of the said limits
shall be compared with the FPI Category (I) holding in
stocks, cash etc. The reporting of holding in stocks and
cash by the clearing member shall be done as specified
in our circular no.001/2019 (Download Ref No: NCL/CMPT/39833)
dated January 01, 2019.
** Market Level Limit for Stock Derivatives
The Exchange enforces the market wide limits through
administrative measures, in the manner detailed below:
At the end of each day the Exchange shall test whether
the market wide open interest for any Security exceeds
95% of the market wide position limit for that Security.
If so, the Exchange shall take note of open position of
all client/TMs as at the end of that day in that Security,
and from next day onwards the members/client shall trade
only to decrease their positions through offsetting positions.
While the Exchange will take this action only at end of
day, they shall disclose real time information about the
market wide open interest as a percentage of the market
wide position limits.
At the end of each day during which the ban on fresh positions
is in force for any Security, the Exchange shall test
whether any member or client has increased his existing
positions or has created a new position in that Security.
If so, that client shall be subject to a penalty equal
to a specified percentage (or basis points) of the increase
in the position (in terms of notional value). The penalty
shall be recovered before trading begins next day. The
Exchange shall specify the percentage or basis points,
which shall be set high enough to deter violations of
the ban on increasing positions.
The normal trading in the Security shall be resumed after
the open outstanding position comes down to 80% or below
of the market wide position limit.