What does the message “Your total notional exposure with bearish view on the index has exceeded 500 crores.” mean?

This message is displayed if the notional value of the index F&O trades in the client’s account crosses ₹500 crores, in accordance with the SEBI regulations (PDF). Notional value = Closing price * lot size.

Clients need to reduce their short index F&O positions (short futures, short calls, and long puts) to come under the limit of ₹500 crores. If a client continues to take new index F&O positions or does not reduce the existing positions, the additional margin will be blocked for a month in the client’s account.

Did you know? The overall notional value will be considered based on the client's PAN level. The hedged quantity will not be added to the notional value limit.