SEBI sets new limits for derivatives @ 20 pc

Mumbai, Sept 23: The Securities and Exchange Board of India (SEBI) has set new limits for stock derivatives to 20 per cent of the free-float capital.

Announcing this during the week-end, the market regulator SEBI's statement said, ''The market-wide position limit shall henceforth be linked to the free-float market capitalisation and shall be equal to 20 percent of the number of shares held by non-promoters in the relevant security.'' For trading members, foreign funds and mutual funds position limits in these contracts has been modified and will be Rs 500 crore or 15 percent of total open interest, whichever is higher, it said.

SEBI has also made the exit criteria for stocks from the derivatives segment more flexible in order to prevent frequent entry and exit of stocks in the segment, the statement added.

UNI