No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Wednesday, October 22, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

Tougher rules on intraday positions to hit F&O traders from tomorrow. How will it impact you?

by TheAdviserMagazine
3 weeks ago
in Business
Reading Time: 2 mins read
A A
Tougher rules on intraday positions to hit F&O traders from tomorrow. How will it impact you?
Share on FacebookShare on TwitterShare on LInkedIn


Capital markets regulator Sebi has earlier rolled out a tighter framework for intraday trading in index derivatives, which will take effect from October 1. The move, aimed at curbing outsized positions that pose risks to market stability, will alter how traders—in the high-stakes world of futures and options—operate on expiry days.

What has changed?

Until now, while end-of-day position limits for index options were clearly defined, intraday exposure was loosely monitored. This allowed certain entities to build speculative positions, especially during the final hours of contract expiry, creating volatility and concerns around market integrity.

Sebi’s new rules introduce strict intraday checks. Starting October 1, every entity will face an intraday net position cap of Rs 5,000 crore (on a futures-equivalent basis), compared with the earlier end-of-day limit of Rs 1,500 crore.

Further, a gross position cap of Rs 10,000 crore on both long and short sides—aligned with existing end-of-day thresholds.

Live Events

Stock exchanges will now conduct at least four random position checks during the trading day, including one snapshot in the final 45 minutes, when trading activity peaks. Breaches will be scrutinised, and traders may be asked to justify their positions.Expiry day clampdownThe changes are especially critical for expiry sessions, where wild swings are seen. Sebi has made it clear that breaches on expiry days will attract penalties or additional surveillance deposits, beginning December 6, once the transition period for position limits ends. This step is intended to discourage reckless position-building that distorts prices and increases systemic risk.

The regulator noted several instances of entities creating outsized intraday bets in index options, exposing the system to potential instability. By setting well-defined caps, Sebi aims to strike a balance between allowing market makers to provide liquidity and ensuring speculative excesses don’t derail fair price discovery.

Impact on traders and investors

For professional traders, proprietary desks, and institutions, these rules will force tighter risk management. Large players can no longer stretch intraday exposures unchecked, especially during expiry-day strategies like “option writing” or volatility plays.

Retail investors, on the other hand, may not feel the immediate heat, but reduced speculative froth could mean less extreme price moves near expiry. In the long term, this is expected to promote more orderly trading and investor confidence in the derivatives market.

India’s derivatives market is among the most active globally, with volumes in index options often dwarfing those in cash equities. While Sebi has encouraged broader participation through reforms like smaller lot sizes and margin adjustments, it has also been wary of excessive speculation. The latest framework is another step in tightening oversight while preserving liquidity.

Add ET Logo as a Reliable and Trusted News Source

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times.)



Source link

Tags: hitimpactIntradaypositionsrulesTomorrowtougherTraders
ShareTweetShare
Previous Post

Making Financial Planning Less Scary For New Clients By Focusing First On What Brings Them Joy: #FASuccess Ep 457 With Larry Sprung

Next Post

Crypto.com Partners With Sharps Technology to Manage $400M+ Solana Treasury and Boost Ecosystem Liquidity

Related Posts

edit post
Genflow Biosciences announces second European patent application (GENFF:OTCMKTS)

Genflow Biosciences announces second European patent application (GENFF:OTCMKTS)

by TheAdviserMagazine
October 22, 2025
0

Genflow Biosciences (OTCQB:GENFF) on Wednesday announced that its second European patent application (Application No. 23821586.7, Publication No. EP4630038), titled "SIRT6...

edit post
Banking, consumption and healthcare to lead market gains: Shibani Sircar Kurian

Banking, consumption and healthcare to lead market gains: Shibani Sircar Kurian

by TheAdviserMagazine
October 22, 2025
0

The market narrative is increasingly shifting towards select pockets of growth within banking, consumption, and healthcare, says Shibani Sircar Kurian,...

edit post
Oil maintains gains on supply risks and US plan to refill strategic reserves

Oil maintains gains on supply risks and US plan to refill strategic reserves

by TheAdviserMagazine
October 21, 2025
0

Oil prices pushed higher for a second day on Wednesday, buoyed by sanctions-related supply risks, hopes of a U.S.-China trade...

edit post
AgNC outlines stable leverage strategy and sees 10.6% economic return as Fed signals rate cuts (NASDAQ:AGNC)

AgNC outlines stable leverage strategy and sees 10.6% economic return as Fed signals rate cuts (NASDAQ:AGNC)

by TheAdviserMagazine
October 21, 2025
0

Seeking Alpha's Disclaimer: The earnings call insights are compilations of earnings call transcripts and other content available on the Seeking...

edit post
‘If there’s no bottom rung on the ladder, it’s really hard to leap up’: Nonprofits focused on Gen Z employment get m Citi Foundation windfall

‘If there’s no bottom rung on the ladder, it’s really hard to leap up’: Nonprofits focused on Gen Z employment get $25m Citi Foundation windfall

by TheAdviserMagazine
October 21, 2025
0

Young jobseekers, challenged by a rapidly changing labor market, are having a tough time. The U.S. unemployment rate for 22-...

edit post
Salesforce revamps its ‘Agentforce’ offerings to try to pull customers across the gap between AI capabilities and AI adoption

Salesforce revamps its ‘Agentforce’ offerings to try to pull customers across the gap between AI capabilities and AI adoption

by TheAdviserMagazine
October 21, 2025
0

Hello and welcome to Eye on AI. In this edition…A breakdown of the AI news from Salesforce’s Dreamforce…OpenAI debuts its...

Next Post
edit post
Crypto.com Partners With Sharps Technology to Manage 0M+ Solana Treasury and Boost Ecosystem Liquidity

Crypto.com Partners With Sharps Technology to Manage $400M+ Solana Treasury and Boost Ecosystem Liquidity

edit post
Teddy Sagi to launch London IPO for Winvia

Teddy Sagi to launch London IPO for Winvia

  • Trending
  • Comments
  • Latest
edit post
77-year-old popular furniture retailer closes store locations

77-year-old popular furniture retailer closes store locations

October 18, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
What to Do When a Loved One Dies in North Carolina

What to Do When a Loved One Dies in North Carolina

October 8, 2025
edit post
Probate vs. Non-Probate Assets: What’s the Difference?

Probate vs. Non-Probate Assets: What’s the Difference?

October 17, 2025
edit post
California Attorney Pleads Guilty For Role In 2M Ponzi Scheme

California Attorney Pleads Guilty For Role In $912M Ponzi Scheme

October 15, 2025
edit post
Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

October 9, 2025
edit post
Banking, consumption and healthcare to lead market gains: Shibani Sircar Kurian

Banking, consumption and healthcare to lead market gains: Shibani Sircar Kurian

0
edit post
Murray Rothbard on Communism and Cuba

Murray Rothbard on Communism and Cuba

0
edit post
Veteran Trader Peter Brandt Says “MSTR Could Go Underwater” If Bitcoin Repeats 1977 Soybean Crash

Veteran Trader Peter Brandt Says “MSTR Could Go Underwater” If Bitcoin Repeats 1977 Soybean Crash

0
edit post
Emergency Fund Sizes Gen Z Should Aim for by Age 25

Emergency Fund Sizes Gen Z Should Aim for by Age 25

0
edit post
StoneX Group – SNEX: Der Finanzdienstleister hat Bock auf Wurst!

StoneX Group – SNEX: Der Finanzdienstleister hat Bock auf Wurst!

0
edit post
An 86-Year-Old Grandmother Was Scammed Out of 0,000 in Life Savings. Should the Banks Be Held Responsible?

An 86-Year-Old Grandmother Was Scammed Out of $700,000 in Life Savings. Should the Banks Be Held Responsible?

0
edit post
Veteran Trader Peter Brandt Says “MSTR Could Go Underwater” If Bitcoin Repeats 1977 Soybean Crash

Veteran Trader Peter Brandt Says “MSTR Could Go Underwater” If Bitcoin Repeats 1977 Soybean Crash

October 22, 2025
edit post
StoneX Group – SNEX: Der Finanzdienstleister hat Bock auf Wurst!

StoneX Group – SNEX: Der Finanzdienstleister hat Bock auf Wurst!

October 22, 2025
edit post
Genflow Biosciences announces second European patent application (GENFF:OTCMKTS)

Genflow Biosciences announces second European patent application (GENFF:OTCMKTS)

October 22, 2025
edit post
Banking, consumption and healthcare to lead market gains: Shibani Sircar Kurian

Banking, consumption and healthcare to lead market gains: Shibani Sircar Kurian

October 22, 2025
edit post
7 Types of Financial Advisors & When to Hire Them

7 Types of Financial Advisors & When to Hire Them

October 21, 2025
edit post
Oil maintains gains on supply risks and US plan to refill strategic reserves

Oil maintains gains on supply risks and US plan to refill strategic reserves

October 21, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Veteran Trader Peter Brandt Says “MSTR Could Go Underwater” If Bitcoin Repeats 1977 Soybean Crash
  • StoneX Group – SNEX: Der Finanzdienstleister hat Bock auf Wurst!
  • Genflow Biosciences announces second European patent application (GENFF:OTCMKTS)
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.