Regulators have revised how the total exposure (Open Interest OI) is measured for individual stock derivatives during the Ban Period in the F&O segment. A new, more accurate metric called Future Equivalent Open Interest (FutEq OI) has been introduced, which applies delta adjustments to measure real portfolio-level risk more precisely.

This new framework enhances the accuracy of Market Wide Position Limit (MWPL) monitoring and ensures better risk control for single-stock derivatives.

Open Interest (OI) was calculated based on the total number of outstanding lots/contracts at end of day.

Compliance with MWPL was checked only once at day-end.

New Method Delta-Based OI (Future-Equivalent OI)

Your overall exposure is now calculated at the portfolio level by combining all open futures and options positions.

The combined exposure is expressed as Future Equivalent Open Interest (FutEq OI).

This approach reflects the actual price sensitivity (delta impact) of your derivatives positions.

MWPL compliance will now be checked multiple times intraday (minimum four random checks), instead of only at day-end.

Fresh positions

Rollovers

 

Square-off of existing positions only

 

If you square off one leg of a hedged position, your FutEq OI may increase.

If this leads to a breach of exposure limits:

Your pending square-off orders may get cancelled, and

Remaining positions may be auto squared off after 2:00 PM on a best-effort basis as per risk policy.

 

Any breach in the delta-based exposure limits for open positions during the Ban Period may attract regulatory penalties. Such penalties, if levied, may be recovered from the client.

 

Read our support article here for more details.