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<h1>SEBI Sets Position Limits for FIIs in Interest Rate Futures: Max 10% of Open Interest or INR 600 Crores.</h1> The circular issued by SEBI outlines the position limits for Foreign Institutional Investors (FIIs) in Exchange Traded Interest Rate Futures (IRF). FIIs' gross open positions must not exceed 10% of total open interest or INR 600 crores, whichever is higher. Additionally, FIIs' short positions must not surpass their long positions in government securities and IRF. A monitoring mechanism involving stock exchanges and depositories, NSDL and CDSL, is established to ensure compliance. The mechanism includes daily reporting and notifications when limits reach 85% and 90% of the permissible threshold. This circular is effective immediately to safeguard investor interests and regulate the securities market.