Description

BSE announces market-wide position limits (MWPL) for securities eligible for Securities Lending and Borrowing Scheme (SLBS) for November 2025, including client-level and institutional investor limits.

Summary

BSE has published the market-wide position limits (MWPL) for securities eligible for trading under the Securities Lending and Borrowing Scheme (SLBS) for November 2025. The circular specifies three-tier position limits: market-wide position limits, client-level position limits (set at 1% of MWPL), and position limits for clearing members and institutional investors (set at 10% of MWPL). The list includes 53 securities comprising ETFs and equity shares with varying position limits based on available shares.

Key Points

  • Position limits specified for 53 securities eligible under SLBS for November 2025
  • Three-tier limit structure: Market-wide, Client-level (1% of MWPL), and CM/Institutional (10% of MWPL)
  • Includes both ETFs and equity shares with ISINs and scrip codes
  • Largest MWPL: LIQUIDCASE (46,994,510 shares), SBFC Finance Ltd (51,329,949 shares)
  • Smallest MWPL: NIFMID150 (47,058 shares)
  • Mix of sectoral ETFs (banking, commodity, healthcare), index ETFs (Nifty, Sensex), and corporate securities
  • Position limits apply to underlying scrip codes with corresponding ISIN numbers

Regulatory Changes

This is a monthly update of position limits for SLBS-eligible securities. No structural regulatory changes are indicated; this represents the standard monthly recalibration of position limits based on current market conditions and available shares for lending/borrowing.

Compliance Requirements

  • Market participants must adhere to the specified market-wide position limits for each security
  • Individual clients are restricted to maximum positions of 1% of the market-wide position limit
  • Clearing members and institutional investors must comply with position limits set at 10% of the market-wide position limit
  • Trading members must monitor and ensure client positions do not exceed prescribed limits
  • Position limits apply to Securities Lending and Borrowing Scheme transactions

Important Dates

  • Effective Period: November 2025
  • Circular Issue Date: October 31, 2025

Impact Assessment

Market Impact: Medium - affects trading strategies and position-taking capacity for participants in SLBS. The updated limits provide clarity on maximum permissible positions, enabling better risk management and trading planning.

Participant Impact: Clearing members, institutional investors, proprietary traders, and retail clients trading SLBS-eligible securities need to adjust positions according to the new limits. Securities with lower position limits may experience reduced liquidity in lending/borrowing activities.

Operational Impact: Trading systems and risk management systems must be updated with the new position limits for November 2025 to ensure real-time monitoring and compliance with prescribed thresholds.

Impact Justification

Regular monthly update of position limits for SLBS-eligible securities affecting trading participants, clearing members, and institutional investors. Important for risk management and compliance but part of routine monthly regulatory framework.