Review of the position limits available to Stock Brokers / Foreign Portfolio Investors (FPIs) - Category I & II / Mutual Funds (MFs) for stock derivatives contracts
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Position limits for brokers and FPIs in stock derivatives revised to a set share of market-wide limit; exchanges to implement. Combined futures and options positions for Stock Brokers, Category I & II FPIs, and Mutual Funds are limited to 20% of the applicable Market Wide Position Limit (MWPL); MWPL and client-level limits remain unchanged. Stock exchanges must amend systems and bye-laws, notify brokers, publish the change, and report implementation status to the regulator under its statutory market-regulation and investor-protection powers.
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Provisions expressly mentioned in the judgment/order text.
Position limits for brokers and FPIs in stock derivatives revised to a set share of market-wide limit; exchanges to implement.
Combined futures and options positions for Stock Brokers, Category I & II FPIs, and Mutual Funds are limited to 20% of the applicable Market Wide Position Limit (MWPL); MWPL and client-level limits remain unchanged. Stock exchanges must amend systems and bye-laws, notify brokers, publish the change, and report implementation status to the regulator under its statutory market-regulation and investor-protection powers.
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