SEBI vide SEBI/DNPD/Cir- 51/2010 dated January 11, 2010 has decided to streamline the operationalisation of Market Wide Position Limits (MWPL) of the derivative contracts on individual securities traded across stock exchanges. This move is based on the on the recommendations of the Secondary Market Advisory Committee (SMAC) to streamline the operationalisation of MWPL.
On a trading day, by 6:30 pm, each exchange would have to disseminate the international securities identification number (ISIN), the name and the symbol of the security along with the MWPL of securities (in terms of number of shares) and open interest (in terms of number of shares) of the security. Open interest in a security is the outstanding futures and options contracts. At 7:00 pm, the exchanges, after consulting with each other, will have to put out the aggregate open interest, and the permissible positions that can be taken up by traders the following day, without breaching the MWPL.
News reports on this move are available here and here.
A copy of the circular is available here.
Monday, January 11, 2010
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