Derivatives and exposure limits · a SIF concept, explained from SEBI’s rules.
In one line
Selling a call option on shares the strategy already owns. In a SIF, a covered call on the underlying stock may be treated as a hedged position.
Because SIF strategies may take unhedged short exposure, the mutual fund restrictions on covered calls (MF Master Circular clauses 13.15.1(a) and 13.15.1(b)(i)) do not apply to SIFs, and covered-call positions on underlying stocks may be treated as hedged positions (FAQ B33). SIFs may write exchange-traded equity and debt options (B32).
Sources: SEBI FAQs on SIFs, Parts B and C, 22 Sep 2026
Illustrative example. A strategy owns 500 shares of a company and sells one call option with a lot of 500 on it. If the price rises above the strike, the gain on the shares is capped; the premium received is kept either way.
Every SIF strategy type, within each strategy’s own offer document. All 36 live strategies are listed on our tracker; each one’s offer document sets its own limits within SEBI’s.
Yes. SIFs may write exchange-traded equity and debt options under their strategies (FAQ B32).
Explanation only, not a recommendation. Trustner Asset Services Pvt. Ltd. is an AMFI-registered Mutual Fund & SIF Distributor (ARN-286886) and may receive commission from fund houses. Investments in Specialized Investment Fund involves relatively higher risk including potential loss of capital, liquidity risk and market volatility. Please read all investment strategy related documents carefully before making the investment decision.