3.1.Numerical value of overall client level open position limits, shall be applicable for each commodity as are provided in table given in Annexure- A to this circular.
3.2.The Exchanges, however, in their own judgment, may prescribe limits lower than what is prescribed by SEBI by giving advance notice to the market under intimation to SEBI.
3.3.For the purpose of position limits, norms applicable on client level positions shall also be applicable to the proprietary positions of trading members and while calculating member’s open positions, his proprietary positions shall be treated and computed like a client’s positions.
3.4.For the purpose of calculating overall position of a member, the overall position of its all clients (as determined in Clause ‘3.1 or 4.1’ below) shall be added without netting off among themselves as also against proprietary positions of the member. Thus, all long clients and all short clients shall be added up separately and higher of the two shall be reckoned as Member’s open position in a commodity derivative.
4.1.For the purpose of calculating overall position of a client, all long and short positions of the client across all contracts shall be netted out.
4.2.Client level position limits shall be equivalent to the numerical level limit as given in table in Annexure- A or 5% of market-wide open interest, whichever is higher.
4.3.Member level position limits shall be 10 times of the numerical value of client level position limits or 20% of the market-wide open interest, whichever is higher.
5.1. For the purpose of calculating positions of a client, all long and short positions of the client across all contracts shall be added up separately and higher of the two shall be considered as his overall open position.
5.2. The overall Client level position limits across all contracts shall be equivalent to the numerical level limit as given in table in Annexure- A.
5.3. The overall member level position limits across all contracts shall be 10 times the numerical value of client level position limit or 15% of the market-wide open interest, whichever is higher.
5.4. Near Month Position Limits: In case of near month contracts :5.4.1. Client level position limits shall be equivalent to the one fourth of the overall Client level position limit as prescribed in table in Annexure-A.5.5. The overall Exchange wide gross position limit, in case of the agricultural commodities, shall be capped at 50% of the annual estimated production and Imports of the commodity. The annual estimates for production and imports may be sourced from the available estimates published by Government of India/Ministry of Agriculture/ Institutions/Agencies/ other Departments of Central and State Government, as may be appropriate.
5.4.2. Member level position limits shall also be equivalent to the one fourth of the overall member level position limit.
i. take steps to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the same.
ii. bring the provisions of this circular to the notice of the members of the Exchange and also to disseminate the same on their website.
iii. communicate to SEBI, the status of the implementation of the provisions of this circular.