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INDIA: Position Limit on Equity Index Derivatives Raised

INDIA
  • India’s securities regulator on Tuesday increased the position limit imposed on equity index derivatives traders from $60 million to almost $900 million per contract “following a demand from market participants,” Bloomberg report.
  • That follows tweaks to curb short-term speculative bets on equity derivatives introduced by the Securities and Exchange Board of India (SEBI) at the start of the month. Measures introduced by the regulator then included limiting weekly options, which it blamed for “hyperactive trading” and “increased volatility” seen on expiry days.
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  • India’s securities regulator on Tuesday increased the position limit imposed on equity index derivatives traders from $60 million to almost $900 million per contract “following a demand from market participants,” Bloomberg report.
  • That follows tweaks to curb short-term speculative bets on equity derivatives introduced by the Securities and Exchange Board of India (SEBI) at the start of the month. Measures introduced by the regulator then included limiting weekly options, which it blamed for “hyperactive trading” and “increased volatility” seen on expiry days.