Starting today, April 1, 2025, the Securities and Exchange Board of India is rolling out a fresh set of intraday trading rules. The goal of this set of rules is to make the market more transparent, manage risks better, and create a more stable space for everyone involved, from seasoned investors to everyday traders, says SEBI.

Here’s a Quick Rundown of what’s changing for Intraday Trading:

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Intraday Monitoring of Positions

Stock exchanges now have to keep an eye on equity index derivatives during the trading day, not just at the end of it. That means they’ll take at least four random snapshots of trading positions at different times throughout the session.

No Penalties for Now

Even though intraday monitoring has kicked in, SEBI says traders won’t be penalized for going over the position limits, for now. These intraday breaches won’t count as violations until further notice. One can say it is a grace period of sorts.

SOPs in the Works

SEBI has also asked exchanges like the BSE and the NSE to work together and come up with a clear Standard Operating Procedure. These SOPs will ensure traders and brokers get real-time updates in case they happen to go over the limit, making it easier to manage risk on the fly.

Why Is SEBI Doing This?

Industry groups raised red flags, saying that many brokers and clients just aren’t ready to monitor their positions in real time. On top of that, the broader market is still getting its systems ready for a shift to new delta-based or futures-equivalent limits (outlined in SEBI’s February 2025 paper).

What This Means for You:

• For Traders and Investors: You will need to be more hands-on with your trading positions throughout the day. Even though you won’t be fined immediately for intraday breaches, it’s smart to start adapting your strategy now. This “penalty-free” window won’t last forever.
• For Brokers and Clearing Members: Brokers and clearing members have to undergo some tech upgrades. Real-time monitoring and alerts will be key in streamlining this process. The upcoming SOP will spell out what you need to do to stay compliant and help clients keep pace with the changes.
   

In a nutshell, SEBI’s latest move is all about making India’s markets more resilient and transparent. These changes are meant to curb risk, especially in the fast-moving world of derivatives. While the penalties are on pause, the shift to intraday monitoring is real, and it’s here. Whether you’re trading or facilitating trades, now’s the time to get familiar with the new setup and fine-tune your approach.