Description
BSE announces market wide position limits for equity derivatives trading members, FIIs, and mutual funds for August 2025.
Summary
BSE has released the Market Wide Position Limits (MWPL) for the Equity Derivatives Segment applicable for August 2025. The circular specifies position limits for Trading Members (TM), Foreign Institutional Investors (FII), Mutual Funds (MF), and Foreign Portfolio Investors (FPI) Category I/II across 49 listed securities.
Key Points
- Position limits apply to Trading Members, FIIs, Mutual Funds, and FPI Category I/II
- Limits are specified for both overall stock positions and stock futures separately
- Market wide limits are set at 20% of non-promoter holdings for each security
- Stock futures limits are set at 1% of non-promoter holdings
- Covers 49 major securities including Adani Group stocks, banking stocks, and large-cap equities
Regulatory Changes
No new regulatory changes introduced - this is a routine monthly update of existing position limit framework.
Compliance Requirements
- Trading Members must ensure their positions do not exceed specified limits
- FIIs and FPIs must comply with both overall stock limits and stock futures limits
- Mutual funds must adhere to prescribed position limits
- Positions exceeding limits may be subject to regulatory action
Important Dates
- Effective Date: August 2025 (month-long applicability)
- Next Update: Expected end of August 2025 for September limits
Impact Assessment
Medium impact on derivatives market participants, particularly large institutional investors who may need to adjust their position sizes to comply with updated limits. The limits help maintain market stability by preventing excessive concentration of positions in individual securities.
Impact Justification
Regular monthly update of position limits affecting derivatives trading for institutional participants