New Delhi: Markets regulator Sebi on Thursday came out with a series of measures to strengthen risk monitoring in equity derivatives, including the intra-day monitoring of market-wide position on single stock derivatives.

As part of the new measures, exchanges will conduct intraday monitoring of Market-Wide Position Limit (MWPL) utilisation at a minimum of four random intervals during the trading day, Sebi said in its circular. Additionally, the regulator has introduced new eligibility criteria for derivatives on non-benchmark indices and revised individual entity-level position limits based on the updated MWPL framework. These measures will be implemented in a phased manner beginning October 1, the Securities and Exchange Board of India (Sebi) said.

The regulator noted that the derivatives market enables efficient price discovery, improved market liquidity and permits investors to manage risk.

Stock exchanges and Clearing Corporations (CCs) together provide the platform and products for trading in the derivatives market, while ensuring online real-time risk management, adequate surveillance, as well as smooth settlement of trades.