New Delhi, Aug. 19 -- The Securities and Exchange Board of India (Sebi) is likely to introduce an intraday limit in index options trading for clients to ensure that no single participant takes excessive positions in the hugely popular index options segment during trading hours.

The proposal is being discussed by a regulatory committee, the Secondary Market Advisory Committee (SMAC), on Tuesday. The panel comprises officials from exchanges, depositories and brokerages.

The meeting comes close on the heels of the regulator cracking down on US high frequency trader Jane Street for its alleged manipulation of non-benchmark and benchmark indices such as Nifty and Bank Nifty to make outsized gains in options trades.

Jane Street has been orde...