FII position limits restrict fresh trading on breach while permitting offsetting transactions to reduce derivative exposure. FIIs may trade all exchange traded derivative contracts subject to position limits: at the FII level index positions capped at 15% of open interest and single stock positions at 7.5% of open interest (each with specified higher floors); at sub account level gross positions on a stock limited to the higher of 1% of free float market capitalisation or 5% of open interest. Exchanges and clearing entities will monitor positions daily using unique FII and sub account codes, with confirmed positions submitted by clearing members; breaches bar fresh positions but permit offsetting transactions. Positions are computed gross for FIIs, net for sub accounts, and valued by open interest times closing price.
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Provisions expressly mentioned in the judgment/order text.
FII position limits restrict fresh trading on breach while permitting offsetting transactions to reduce derivative exposure.
FIIs may trade all exchange traded derivative contracts subject to position limits: at the FII level index positions capped at 15% of open interest and single stock positions at 7.5% of open interest (each with specified higher floors); at sub account level gross positions on a stock limited to the higher of 1% of free float market capitalisation or 5% of open interest. Exchanges and clearing entities will monitor positions daily using unique FII and sub account codes, with confirmed positions submitted by clearing members; breaches bar fresh positions but permit offsetting transactions. Positions are computed gross for FIIs, net for sub accounts, and valued by open interest times closing price.
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