Description

BSE announces position limits for stocks traded under Securities Lending and Borrowing Scheme for September 2025, covering 42 securities including ETFs and individual stocks.

Summary

BSE has announced the market-wide position limits for stocks traded under the Securities Lending and Borrowing Scheme (SLBS) for September 2025. The circular specifies position limits for 42 securities including various ETFs and individual stocks, with limits set at three levels: market-wide, client-level, and clearing member/institutional investor levels.

Key Points

  • Position limits specified for 42 securities under SLBS for September 2025
  • Three-tier limit structure: Market Wide, Client Level, and CM/Institutional Investor levels
  • Includes major ETFs covering Nifty Bank, IT, PSU Bank, and sectoral indices
  • Individual stock limits range from small-cap to large-cap securities
  • Largest market-wide limit: Easy Trip Planners (180.84 million shares)
  • ETF limits include major funds like UTI Nifty Bank ETF (65.02 million shares)

Regulatory Changes

No regulatory framework changes - this is a routine monthly update of position limits based on market conditions and liquidity parameters.

Compliance Requirements

  • Market participants must adhere to the specified position limits
  • Client-level positions cannot exceed 1% of market-wide limits
  • Clearing members and institutional investors limited to 10% of market-wide limits
  • Limits apply to all SLBS transactions in the specified securities

Important Dates

  • Effective Date: September 2025 (specific start date not mentioned)
  • Circular Date: August 29, 2025

Impact Assessment

The position limits will affect securities lending and borrowing strategies for institutional investors, hedge funds, and other market participants. The limits ensure adequate liquidity while preventing excessive concentration in individual securities. ETF limits are particularly significant given their popularity in lending programs, with some major ETFs having substantial lending capacity.

Impact Justification

Regular monthly update of position limits affecting trading strategies and risk management for securities lending participants