Mumbai, May 30 -- The Securities and Exchange Board of India (SEBI) has issued a comprehensive circular introducing sweeping changes to the regulatory framework of the equity derivatives market. The new measures aim to strengthen risk controls, improve alignment with the cash market, and ensure fair and orderly participation across all market participants.

One of the most significant changes is the recalibration of the Market Wide Position Limit (MWPL). Until now, MWPL was based solely on a stock's free float. The revised structure introduces a dual benchmark: the lower of 15% of free float or 65 times the average daily delivery value (ADDV), with a minimum floor of 10% of free float. This shift is designed to make position limits more r...