Description

BSE announces market-wide, client-level, and institutional position limits for 51 securities eligible for Securities Lending and Borrowing Scheme (SLBS) for December 2025.

Summary

BSE has announced the market-wide position limits, client-level position limits, and position limits for clearing members and institutional investors for 51 securities eligible for trading under the Securities Lending and Borrowing Scheme (SLBS) for December 2025. The circular provides detailed position limits for various ETFs and individual stocks, with limits varying significantly based on the underlying security.

Key Points

  • Position limits set for 51 securities eligible under SLBS for December 2025
  • Three-tier limit structure: Market-wide, Client-level, and CM/Institutional Investor levels
  • Client level limits are 1% of market-wide limits
  • CM and Institutional Investor limits are 10% of market-wide limits
  • Majority of securities listed are ETFs (Exchange Traded Funds) including sectoral, thematic, and index-based funds
  • Individual stocks include companies like Fedbank Financial Services (14.6M market-wide limit), Samhi Hotels (22.1M), SBFC Finance (51.3M), and TVS Supply Chain Solutions (25.1M)
  • Largest market-wide position limit: SBFC Finance Ltd at 51,329,949 shares
  • Smallest market-wide position limit: NIFMID150 ETF at 47,058 shares

Regulatory Changes

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

Compliance Requirements

  • Market participants must adhere to the specified position limits when trading in SLBS-eligible securities
  • Clearing members must ensure client positions do not exceed client-level limits
  • Institutional investors must comply with the 10% market-wide limit threshold
  • All participants must monitor and maintain positions within prescribed limits across the three categories

Important Dates

  • Effective Month: December 2025
  • Circular Date: November 28, 2025

Impact Assessment

Market Impact: Medium - Affects trading strategies for participants in the securities lending and borrowing market, particularly for the 51 listed securities.

Operational Impact: Participants engaged in SLBS trading must update their risk management systems and position monitoring tools to reflect the new December 2025 limits. The varying position limits across different securities require careful tracking, especially for ETFs with lower limits (like NIFMID150 at 47,058 shares) versus high-limit stocks (like SBFC Finance at 51.3M shares).

Trading Strategy Impact: The position limits may constrain large institutional players’ ability to take substantial positions in certain ETFs with lower limits, while allowing greater flexibility in high-limit securities. The 1% client-level cap and 10% institutional cap provide clear guardrails for position concentration.

Impact Justification

Monthly position limit updates for SLBS-eligible securities affect trading strategies for institutional investors, clearing members, and clients dealing in securities lending/borrowing, primarily impacting ETFs and select equities.