Changes in Future Equivalent Intraday Position Limits Monitoring and Order to Trade Ratio for Closing Auction Session

Official title

Changes in Future Equivalent (FutEq)/(Delta) Intraday Position Limits Monitoring for Equity Index Derivatives and Order to Trade Ratio (OTR) on account of Closing Auction Session (CAS)

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What changed

BSE has updated the framework for intraday position limits monitoring for equity index derivatives and the Order to Trade Ratio (OTR) to accommodate the Closing Auction Session (CAS). The Exchange will not take intraday snapshots from the start of the CAS until the equilibrium index price is determined. A fifth snapshot will be taken between the determination of the equilibrium price and 15:40 hours. The 15-minute cure period will not apply to snapshots taken after 14:45 hours. Additionally, the underlying index's closing price will be used for delta computation and position valuation for post-equilibrium snapshots. Orders placed during the CAS in the cash segment will be excluded from OTR computations. Trading members must ensure compliance with these revised monitoring procedures.

Who is affected
  • Trading members of the Exchange
Required action
  • Trading members must ensure compliance with the revised intraday position limits monitoring and OTR computation procedures.
Exceptions
  • The 15-minute cure period does not apply to snapshots taken after 14:45 hours.
  • Orders placed during the CAS in the cash segment are excluded from OTR computation.

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Source details

Source
BSE Ltd (Bombay Stock Exchange)
Type
notice
Published by source
30 Jul 2026
Document number
20260731-40
Issuing division
DOSS
Coverage area
securities

Document text

Prepared for reading; wording retained from the source.

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NOTICE

Notice No.20260731-40
Notice Date31 Jul 2026
CategoryTrading
SegmentDerivatives
DepartmentDOSS
SubjectChanges in Future Equivalent (FutEq)/(Delta) Intraday Position Limits Monitoring for Equity Index Derivatives and Order to Trade Ratio (OTR) on account of Closing Auction Session (CAS)
AttachmentsNo Attachment

This is in continuation of Exchange notices 20250630-86 dated June 30, 2025, 20250902-47 dated September 02, 2025, 20250930-114 dated September 30, 2025, 20251205-63 dated December 05, 2025, and in accordance with the SEBI circulars SEBI/HO/MRD/TPD1/P/CIR/2025/79 dated May 29, 2025, and SEBI/HO/MRD/TPD/CIR/P/2025/122 dated September 01, 2025. Members may note the changes below pertaining to the Framework for Intraday Position Limits Monitoring for Equity Index Derivatives and Order-to Trade Ratio (OTR) on account of Closing Auction Session (CAS):

Market participants may note that no intraday snapshot would be taken by the Exchange from the start of CAS period till equilibrium price of index is arrived at. In aforesaid circulars it was mentioned that “Exchange shall consider a minimum of four snapshots during the day for intraday monitoring of position limit”.

In view of the CAS, an additional period will be added for the fifth snapshot i.e. after the determination of equilibrium index price to 15:40 hrs. The cure period of 15 minutes will not apply to the snapshots taken post 14:45 hrs.

The close price of the underlying index shall be used in the delta computation formula as well as for the positions valuation for any snapshot taken post the determination of equilibrium price of the underlying index. The positions in contracts expiring on same day (i.e. For contracts where Expiry date = Trade date) shall also be considered for intraday monitoring snapshots (including the snapshots taken upto 15:40 hrs).

The Time to expiry for delta calculation as per Black & Scholes formula (Annexure 2 of 20250930-114 dated September 30, 2025) shall be considered as per the revised derivatives market close time of 15:40 hrs (for expiry day).

This is in continuation to Exchange notice no. 20260210-8 dated February 10, 2026 and 20260406-8 dated April 06, 2026. Members may note that the orders placed during CAS shall not be considered for computation of Order to Trade Ratio (OTR) in cash segment, for the stocks available in CAS.

Trading Members are requested to take note of the above and ensure compliance with the same.

For and on behalf of BSE Ltd.

Soumil Shah Deputy Vice President Surveillance

Harish Kadam Manager Surveillance

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