Investment

SEBI’s New Intraday Trading Rules: Key Changes Effective April 1, 2025

By FreshNewsPoint AdminPosted on
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SEBI’s New Intraday Trading Rules: Key Changes Effective April 1, 2025

SEBI’s New Intraday Trading Rules

Introduction

SEBI has introduced new rules for intraday trading, focusing on stricter monitoring of position limits in index derivatives. While the regulator has tightened oversight, it has also provided temporary relief to brokers and traders for system upgrades. The new rules aim to enhance market transparency and stability.

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Key Highlights of SEBI’s Circular (March 28, 2025)

  • Effective Date: April 1, 2025
  • Intraday Monitoring: Position limits in index derivatives (Nifty, Bank Nifty, etc.) will now be checked multiple times a day.
  • No Immediate Penalty: Exceeding intraday limits will not attract penalties initially, but exchanges will issue alerts.
  • Brokers Given Time: SEBI has allowed brokers additional time to upgrade their systems.

What Changes for Traders?

1. Live Monitoring of Position Limits

  • Earlier, position limits were checked only at the end of the day.
  • Now, exchanges will conduct at least 4 random intraday checks to ensure compliance.

2. No Penalty (For Now)

  • If a trader exceeds intraday limits, no penalty will be imposed immediately.
  • However, exchanges will send alerts to notify traders, helping them manage risk.

3. Relief for Brokers

  • Broker associations (ANMI, BBF, CPAI) requested more time for system upgrades.
  • SEBI agreed, allowing monitoring without penalties until systems are fully ready.

Next Steps: Standard Operating Procedure (SOP)

  • Exchanges will jointly prepare an SOP detailing how intraday monitoring will work.
  • This will guide brokers and traders on compliance and risk management.

What Should Investors Do?

  • If you trade in index futures or options, be aware that your positions will be checked multiple times a day.
  • While exceeding limits won’t lead to immediate penalties, monitor your exposure to avoid alerts.

Conclusion

SEBI’s new rules strike a balance between stricter oversight and practical relief for market participants. The focus is on transparency, risk control, and smoother implementation of intraday trading norms.