Derivatives and exposure limits · a SIF concept, explained from SEBI’s rules.
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How SEBI measures a derivative position against SIF limits: futures at price × lot size × contracts, options bought at the premium paid, and options sold at the underlying's market price.
The circular applies the mutual fund definition of exposure (para 6.1.2): futures, long or short = futures price × lot size × number of contracts; options bought = premium paid × lot size × contracts; options sold = market price of the underlying × lot size × contracts; any other derivative at the notional market value of the contract. Total gross exposure from option premium paid and received may not exceed 20% of net assets, as for mutual funds (FAQ B42).
Sources: SEBI circular on the SIF framework, 27 Feb 2025; SEBI FAQs on SIFs, Parts B and C, 22 Sep 2026
SEBI's illustration. With XYZ futures at ₹2,525 and a lot of 500, a ₹10 crore short is 79 contracts: ₹10 crore ÷ (2,525 × 500). With XYZ 2500 calls bought at a premium of ₹90, ₹10 crore of exposure is 2,222 contracts: ₹10 crore ÷ (90 × 500) (circular, Annexure A1).
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. Total gross exposure from option premium paid and received may not exceed 20% of net assets, as for mutual funds (FAQ B42).
At the market price of the underlying × lot size × number of contracts (circular para 6.1.2.3), not at the premium received.
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.