Derivatives and exposure limits · a SIF concept, explained from SEBI’s rules.
In one line
Netting a derivative against a holding or another derivative on the same underlying, so the pair counts once toward exposure limits. For SIFs, two contracts offset only if they share the underlying and the expiry date.
Offsetting is allowed between cash and derivative positions on the same underlying security, and between derivative positions on the same underlying (circular para 6.1.4). Two derivative contracts offset only with the same underlying and the same expiry date (FAQ B28, B29), so calendar spreads get no offset (B26). Partly paid shares, warrants, DVRs and rights entitlements cannot be offset against a short future (B30).
Sources: SEBI circular on the SIF framework, 27 Feb 2025; SEBI FAQs on SIFs, Parts B and C, 22 Sep 2026
SEBI's table. Equity long + futures short: offset; count the equity long only. Futures short + call option long: offset; count the futures short only. Equity long + futures long: no offset; count both (circular, Annexure A1, table C).
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.
No. To offset, two derivative contracts must be on the same underlying security and have the same expiry date (FAQ B29).
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