There is no penalty, @Meshak_T corrected me.
meshak
Hi sir, good evening
If a client breaches net delta of 1500CR, there is no penalty, but a additional surveillance deposit(ASD) will be blocked for 1 month.
https://nsearchives.nseindia.com/content/circulars/SURV71673.pdf
How close are you to breaching broker OI limits? Earlier a lot of strikes were blocked. These few years not so much…
@nithin
I believe SEBI set the 15% OI limit after careful consideration.
Since buying ITM or deep OTM options and holding them overnight habits are the same across the industry, why is only zerodha struggling to stay within SEBI’s 15% OI threshold?
There must be more to the story…, 
so matter of investigation/discussion.
Don’t know the truth but Zerodha’s explanation about people not able to buy otm options due to OI over shooting was never convincing. Even during those times people as the questions about why other brokers were not facing that issue on which no convincing explanation was given…
This is actually the first time I’m hearing about the 15% OI limit per broker.
I tried digging into this a bit more but couldn’t find any clear limitations for exchanges around concentration risk. NSE today handles most of the derivatives volume and a large share of cash market as well.
And how did the market structure evolve to a point where we effectively have only two exchanges, with one dominating most segments?
I read this as well - https://www.moneycontrol.com/news/business/markets/f-o-expiry-on-tuesday-or-thursday-here-s-why-the-trading-day-matters-13102477.html/amp
Most of the days we were around 13 to 15% of overall OI across index so only we are not imposing any range restrictions like before.
Why would we (a broker) not want our customers to trade? Habits are the same across the industry; we have a problem due to our size.
I suppose that if you had traded index F&O with us from 2020 to 2024, you would have been aware of this.
Yes, while the regulation applies to all brokers regarding concentration risk, SEBI is okay with concentration being with the exchanges, I suppose.
https://nsearchives.nseindia.com/content/circulars/SURV67436.pdf
Ok, so in short;
when asked about size get answered it’s about habit.
when asked about habit get answered it’s about size.
Very difficult to understand . Can you simplify?
Nothing left to explain; read the few posts above.
When asked about size, why is Zerodha the only broker struggling to stay within the SEBI 15% OI limit?
The answer relates to their clients habits (the biggest issue is customers buying OTM options and holding them overnight).
When asked about habits
the answer is that it is due to their client size
Right. So a combination of both.
Looking at active client-base, there appear to be only a handful of brokers operating in the same ballpark,
it sounds interesting to find out…
a. …if any other brokers have the same challenge with 15% OI limit,
and if they have implemented any workarounds/solutions (like 3rd party custodial accounts).
b. …or other brokers do not have this challenge yet,
because their client-base has different usage patterns.
Groww doesnt seem to host that many ‘very active’ fno traders, those who trade daily
Zerodha’s revenue was much higher than next 3 combined, few years back. Even now Z’s revenues are the highest.
