Mumbai: The Securities and Exchange Board of India (SEBI) said on Friday that market-wide position limits for single stock futures and options has been modified to 20 per cent of the free-float capital.
"The market-wide position limit shall henceforth be linked to the free-float market capitalisation and shall be equal to 20 per cent of the number of shares held by non-promoters in the relevant security," it said in a statement.
For trading members, foreign funds and mutual funds position limits in these contracts has been modified and will be Rs 5 billion or 15 per cent of total open interest, whichever is higher, the regulator said.
SEBI has also made the exit criteria for stocks from the derivatives segment more flexible in order to prevent frequent entry and exit of stocks in the segment.
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