What should sooth nerves is this short statement which otherwise will have a massive impact. 

In my understanding this refers to a limit introduced during COVID times which restricted short selling in F&O restricted to ₹500Cr per client/UCC.

While till now this monitoring was done at EOD, one of the measure in the current SEBI circular requires it to be monitored during the day too. (Live from 1st April 2025).

This statement from SEBI WTM Ananth Narayan may increase hopes for many large traders who otherwise would have seen this clause increasing costs.