Limit on Open Interest position?

F&O
1

Hi,

I read this from NSE website,

" Index Options
The position limits of Trading members / FPIs (Category I & II) / Mutual Funds in equity index option contracts is higher of Rs.500 crores or 15% of the total open interest in the market in equity index option contracts. This limit would be applicable on open positions in all option contracts on a particular underlying index "

So lets say for Nifty 16 June expiry. The total OI for 17,000 call is 30 lakh. So does this mean that one trader cannot hold more then 15% of 30 lakh which is 4.5 lakh at any time ?? Can a trader hold 10 lakh out of 30 lakh total OI on “one particular strike”??

or is this 15% limit for the combined OI for all the strikes on Nifty 50 index??

1 Like
2

The 15% Open Interest limit is on Trading Members ie. brokers, FPIs, MFs, etc. The client-wise open interest limit is 5%. What this means is, a single individual cannot hold more than 5% of the total open interest on any future or option contract. So if the open interest is 1 lakh lots, you cannot hold more than 5000 lots in that contract.

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3

When will this limit go away? Is there any possibility in the near future?

4

what if one person has account with two different brokers ?? then he can hold 5% position with one broker, and another 5% position with second broker , for a total of 10% with the two brokers?? Will this be possible ??