BS EDIT: Sebi’s derivatives rule: Will it disrupt markets?

By Business StandardPublished On Mar 20, 2025

What is Sebi proposing?

New OI calculation using delta-based limits

Pre-opening & post-closing sessions for derivatives

Higher position limits for entities

Why is FIA opposing it?

Delta calculations add complexity

Higher price volatility & market risks

Potential liquidity crunch

Delta-based OI – A risky move?

Frequent shifts in limits disrupt trading

Common strategies may be misclassified

Could force traders out unnecessarily

Market impact concerns

Lower liquidity & increased volatility

Higher trading costs for investors

Could deter foreign players

What does FIA suggest?

Avoid delta-based calculations

Follow global risk-management practices

Raise EoD limits if delta is implemented

What’s next?

No defaults under the current system – is change needed?