Sebi is examining position limits for non-agricultural contracts, with the stated objective of improving liquidity in these contracts.
Focus on contract liquidity
Position limits determine the size of positions that can be held in contracts. Sebi's review indicates that the regulator is assessing whether the existing limits for non-agri contracts are aligned with the need for stronger liquidity.
Regulatory review underway
The examination covers non-agricultural contracts and is focused on liquidity. No further details about possible changes to the limits, the contracts involved or the timing of any decision were provided.
The review places position limits at the centre of Sebi's effort to support liquidity in the non-agricultural contract segment.