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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 PAN level for a client. Hedged quantity will not be added to the notional value limit.