New Delhi, Feb. 28 -- The Securities and Exchange Board of India (Sebi) has proposed revising the Rs.500 crore exposure limit for index futures and options (F&O), along with other measures to strengthen risk assessment in the derivatives market. Outlined in a consultation paper released on 24 February, these changes aim to enhance market efficiency and risk monitoring.

One of the key proposals is altering the method of calculating open interest (OI), which represents outstanding buy-sell positions in the derivatives market.

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Sebi also plans to link the market-wide position limit (MWPL)-which caps the total open contracts in single-stock ...