SEBI has introduced a new method to calculate open interest in the derivatives market, using delta-adjusted positions, known as FutEq OI.
This approach accounts for the actual sensitivity of derivative contracts to movements in the underlying asset, allowing for a more accurate assessment of risk. In addition, the market-wide position limit (MWPL) framework has been revised.
MWPL will now be determined based on the lower of 15% of the free-float market cap or 65 times the average daily delivery value, with a minimum floor of 10% of free float.
SEBI’s revised open interest and position limit framework are aimed at strengthening market integrity.
(This is a developing story)
