Description

BSE announces market-wide, client-level, and institutional position limits for 52 securities eligible for Securities Lending and Borrowing Scheme (SLBS) effective December 2025.

Summary

BSE has published the market-wide position limits, client-level position limits, and position limits for clearing members (CM) and institutional investors for 52 securities eligible for trading under the Securities Lending and Borrowing Scheme (SLBS) for December 2025. The circular includes detailed position limits across ETFs, sectoral funds, and individual equity stocks.

Key Points

  • Position limits specified for 52 securities under SLBS framework
  • Three-tier limit structure: Market-wide, Client-level, and CM/Institutional level
  • Client-level limits set at 1% of market-wide limits
  • CM and institutional investor limits set at 10% of market-wide limits
  • Covers diverse securities including index ETFs, sectoral ETFs, thematic funds, and individual equities
  • Largest market-wide limit: SBFC Finance Ltd (51,329,949 shares)
  • Smallest market-wide limit: NIFMID150 ETF (47,058 shares)
  • Includes major ETFs tracking NIFTY, SENSEX, Banking, and thematic indices

Regulatory Changes

This is a monthly update of position limits for SLBS-eligible securities. No new regulatory framework changes are introduced in this circular.

Compliance Requirements

  • All participants in SLBS must adhere to the specified position limits
  • Client positions must not exceed 1% of the market-wide position limit for each security
  • Clearing members and institutional investors must not exceed 10% of the market-wide position limit
  • Participants must monitor and ensure compliance with limits during December 2025
  • Stock exchanges and clearing corporations must enforce these limits

Important Dates

  • Effective Period: December 2025
  • Circular Date: November 29, 2025

Impact Assessment

Market Impact: Medium - affects trading and lending/borrowing strategies for 52 securities across equity and ETF segments.

Participant Impact:

  • Institutional investors and hedge funds using SLBS for short-selling or arbitrage strategies must adjust positions according to updated limits
  • Clearing members facilitating SLBS transactions need to monitor client exposures
  • Retail clients participating in SLBS face relatively small individual limits (ranging from 470 shares for NIFMID150 to 513,299 shares for SBFC Finance)

Risk Management: Position limits serve as a risk mitigation measure to prevent excessive concentration in securities lending/borrowing, ensuring market stability and orderly settlement.

Securities Coverage: The list includes a diverse mix of:

  • Index ETFs (NIFTY, SENSEX, Bank NIFTY)
  • Thematic/Factor ETFs (Quality, Momentum, Low Volatility, Healthcare)
  • PSU and Private Bank ETFs
  • Mid-cap and Small-cap funds
  • Individual stocks from financial services, healthcare, hospitality, and manufacturing sectors

Impact Justification

Regular monthly update of position limits for SLBS-eligible securities. Affects trading strategies for institutional investors, clearing members, and clients engaged in securities lending/borrowing activities across 52 securities including ETFs and equities.