The position limits for FII, Mutual Funds , FII sub-accounts & MF schemes are
monitored based on the Custodian Participant (CP)
Codes allotted to these entities by NSCCL. The applicable position limits
are as under:
At the level of the FII and MF
i. FII & MF Position limits in Index options contracts:
FII and MF position limit in all index options contracts on a particular
underlying index are Rs.500 crores or 15 % of the total open interest of the
market in index options, whichever is higher. This limit is applicable on open
positions in all options contracts on a particular underlying index.
ii. FII & MF Position limits in Index futures contracts:
FII and MF position limit in all index futures contracts on a particular
underlying index is Rs.500 crores or 15 % of the total open interest of the
market in index futures, whichever is higher. This limit is applicable on open
positions in all futures contracts on a particular underlying index.
In addition to the above, FIIs & MF’s can take exposure in equity index
derivatives subject to the following limits:
a. Short positions in index derivatives (short futures, short calls and long
puts) not exceeding (in notional value) the FII’s / MF’s holding of stocks.
b. Long positions in index derivatives (long futures, long calls and short puts)
not exceeding (in notional value) the FII’s / MF’s holding of cash, government
securities, T-Bills and similar instruments.
In this regard, if the open positions of an FII / MF exceeds the limits as
stated in item no a or b, such surplus is 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 are compared with the
FII’s / MF’s holding in stocks, cash etc as stated above. Members are required
to report their holdings in stocks, cash etc in a
iii. Stock Futures & Options:
a. For stocks having applicable market-wide position limit (MWPL) of Rs. 500
crores or more, the combined futures and options position limit is 20% of
applicable MWPL or Rs. 300 crores, whichever is lower and within which
futures position cannot exceed 10% of applicable MWPL or Rs. 150 crores,
whichever is lower.
b. For stocks having applicable market-wide position limit (MWPL) less than Rs.
500 crores, the combined futures and options position limit is 20% of applicable MWPL and
futures position cannot exceed 20% of applicable MWPL or Rs. 50 crore
which ever is lower.
At the level of the FII sub-account / MF scheme
Index Futures & Options:
A disclosure is required from any person or persons acting in concert who
together own 15% or more of the open interest of all futures and options
contracts on a particular underlying index on the Exchange. Failure to do so is
treated as a violation and l attracts appropriate penal and disciplinary action
in accordance with the Rules, Bye-Laws and Regulations of NSE/NSCCL.
Stock Futures & Options:
The gross open position across all futures and options contracts on a particular
underlying security, of a sub-account of an FII, / MF scheme should not exceed the higher of
- 1% of the free float market capitalisation (in terms of number of shares)
- 5% of the open interest in the derivative contracts on a particular underlying
stock (in terms of number of contracts). These position limits are applicable on
the combined position in all futures and options contracts on an underlying
security on the Exchange.
The Clearing Corporation monitors the FII position limits at the end of each
trading day. For this purpose, FIIs/sub-account of FII intending to trade in the
F&O segment of the Exchange are required to take a
custodian participant (CP) code from NSCCL.
Only FIIs/ sub accounts of FIIs which have been allotted a unique CP code by
Clearing Corporation are permitted to trade on the Exchange.
The FII/ sub-account of FII should ensure that all orders placed by them on the
Exchange carry the relevant CP code allotted by Clearing Corporation in the
relevant field in NEATFO trading system.
Clearing Member/s of the FII are required to submit the details of all the
trades confirmed by FII to Clearing Corporation, by the end of each trading day,
as per the mechanism specified.
Clearing Corporation monitors the open positions of the FII/ sub-account of the
FII for each underlying security and index on which futures and option contracts
are traded on the Exchange, against the position limits specified at the level
of FII/ sub-accounts of FII respectively, at the end of each trading day.
In the event of an FII breaching the position limits on any underlying, Clearing
Corporation advises the Exchange to withdraw the facility granted to such FII to
take any fresh positions in any derivative contracts. Such FII is required to
reduce their open position in such underlying, in accordance with the mechanism
provided by Clearing Corporation from time to time. The facility withdrawn is
reinstated upon due compliance of the position limits.
It is also obligatory on FIIs to report any breach of position limits by them /
their sub-account/s, to Clearing Corporation and ensure that such sub-account/s
does not take any fresh positions in any derivative contracts in such
underlying. The sub-account of FII is required to reduce open position in such
underlying, in accordance with the mechanism specified by Clearing Corporation
and is permitted to take further positions only upon due compliance of the
The position limits are computed on a gross basis at the level of a FII and on a
net basis at the level of sub-accounts and proprietary positions.
The open positions for all derivative contracts are valued as the open interest
multiplied with the closing price of the respective underlying in the cash
Clearing Members |
Clearing Banks |
Settlement Schedule |
Settlement Price |
Corporate Action Adjustment |
Data & Reports Download |
Custodial Participant deals