mumbai, Aug. 20 -- A committee set up by the capital markets regulator has discussed a proposal to introduce an intraday net exposure limit of Rs.1,500 crore on the expiry day of weekly options like Nifty and Sensex to curtail outsized positions and frenzy in trading, according to three people aware of the matter. The discussions of the Secondary Market Advisory Committee (SMAC) on Tuesday came after the Securities and Exchange Board of India (Sebi) cracked down on US-based hedge fund Jane Street for alleged manipulation of Bank Nifty and Nifty to make outsized gains in options trading on these two indices. Sebi in an interim order on 3 July said the gains were at the cost of losses borne largely by retail clients. Jane Street has deposited Rs.4,844 crore in an escrow account in Sebi's favour to continue trading until the regulator completes its investigation. Jane Street has denied Sebi's allegations. Sebi didn't respond to Mint's emailed queries. Currently, Sebi stipulates clients should not cross a Rs.1,500 crore end-of-day limit on a net basis and Rs.10,000 crore on a gross level. There is no intraday limit. Net limit refers to the difference between the long and short options positions, while the gross limit aggregates the long and short positions. If a client buys Rs.100 crore worth of Nifty calls and sells Rs.80 crore worth of puts, the net limit is Rs.20 crore and the gross limit is Rs.180 crore. A broker, aware of the committee's discussions, said while most clients adhered to the end-of-day limits on non-expiry days, they exceed this cap on expiry days as by market closing, the contract expires and the limit is redundant. "It is to prevent frenzy on expiry days that this proposal could have been discussed," he said. NSE Nifty options expire on every Thursday, while BSE's Sensex options are settled every Tuesday....