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Capital markets regulator Sebi has earlier rolled out a tighter framework for intraday trading in index derivatives, which will take effect from October 1. The move, aimed at curbing outsized positions that pose risks to market stability, will alter how traders—in the high-stakes world of futures and options—operate on expiry days.What has changed?Until now, while end-of-day position limits for index options were clearly defined, intraday exposure was loosely monitored. This allowed certain entities to build speculative positions, especially during the final hours of contract expiry, creating volatility and concerns around market integrity.Sebi's new rules introduce strict intraday checks. Starting October 1, every entity will face an intraday net position cap of Rs 5,000 crore (on a futures-equivalent basis), compared with the earlier end-of-day limit of Rs 1,500 crore.Further, a gross position cap of Rs 10,000 crore on both long and short sides—aligned with existing end-of-day thresholds.Stock exchanges will now conduct at least four random position checks during the trading day, including one snapshot in the final 45 minutes, when trading activity peaks. Breaches will be scrutinised, and traders may be asked to justify their positions.Expiry day clampdownThe changes are especially critical for expiry sessions, where wild swings are seen. Sebi has made it clear that breaches on expiry days will attract penalties or additional surveillance deposits, beginning December 6, once the transition period for position limits ends. This step is intended to discourage reckless position-building that distorts prices and increases systemic risk.The regulator noted several instances of entities creating outsized intraday bets in index options, exposing the system to potential instability. By setting well-defined caps, Sebi aims to strike a balance between allowing market makers to provide liquidity and ensuring speculative excesses don’t derail fair price discovery.Impact on traders and investorsFor professional traders, proprietary desks, and institutions, these rules will force tighter risk management. Large players can no longer stretch intraday exposures unchecked, especially during expiry-day strategies like "option writing" or volatility plays.Retail investors, on the other hand, may not feel the immediate heat, but reduced speculative froth could mean less extreme price moves near expiry. In the long term, this is expected to promote more orderly trading and investor confidence in the derivatives market.India’s derivatives market is among the most active globally, with volumes in index options often dwarfing those in cash equities. While Sebi has encouraged broader participation through reforms like smaller lot sizes and margin adjustments, it has also been wary of excessive speculation. The latest framework is another step in tightening oversight while preserving liquidity.(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times.)

India's imports of gold and silver nearly doubled in September from August, defying record high prices, as banks and jewellers rushed to build inventories ahead of festivals and escape higher taxes on imports, trade and government sources said. Higher imports by India, the world's second-biggest consumer of the precious metal, are set to support gold prices that hit records this week, even as demand languishes in top buyer China. The surge in imports could widen India's trade deficit and weigh on the weaker rupee, however. "Jewellers and banks have been clearing a lot of gold from customs over the past two weeks," said a government official, who sought anonymity as he was not authorised to talk to the media. "We haven't seen such a rush in years." Customs authorities have cleared a much larger volume of imports in September compared to August, he said, with even higher clearance expected on the last day of the month, ahead of a likely increase in the base import price of gold and silver. The base import price is used to calculate import duty, and the Indian government revises it every 15 days. Banks and bullion dealers are rushing to clear imports before the new base price takes effect on Wednesday, as it is likely to be higher after the recent global rally in prices, said Chirag Thakkar, chief executive of Amrapali Group, a leading precious metal importer in the western state of Gujarat. "Even with gold and silver hitting record highs, buyers kept chasing them, and investment demand surged," said Thakkar, whose company more than doubled its gold and silver purchases in September from the previous month. India spent $5.4 billion to import 64.17 tons of gold and $451.6 million for 410.8 tons of silver in August, trade ministry data shows. The government will release trade data for September in mid-October. Indian gold futures hit a record high of 116,900 rupees per 10 grams on Tuesday, while silver futures climbed to an all-time high of 144,330 rupees per kg.Also read: Gold hits record high, heads for best month in 14 years on safe-haven rush Jewellers, who had stayed away from gold and silver in recent months awaiting a price correction, are now paying a premium to stock up ahead of the festival season as prices hit fresh highs, said a Mumbai-based dealer at a private bullion-importing bank. In October, Indians will celebrate Diwali, the festival of lights, when it is considered auspicious to buy gold. Indian dealers this week quoted a premium of up to $8 per ounce over official domestic prices, inclusive of 6% import and 3% sales levies. "Strong buying from India is surprising the market, especially as China remains inactive at these levels," said a Singapore-based bullion dealer. In China, dealers widened discounts this month to $31 to $71 per ounce against global benchmark prices, the highest in several years.

India recorded above-average rainfall during the June to September monsoon season for a second consecutive year in 2025, a senior weather department official told Reuters on Tuesday. The country received 8% more rainfall than average, boosted by heavy downpours in September, said the official with the state-run India Meteorological Department.