Description

BSE publishes updated market-wide position limits for 75 securities in the equity derivatives segment, specifying limits for total market positions and client/NRI/mutual fund categories.

Summary

BSE has published the market-wide position limits for 75 securities in the equity derivatives segment. The circular specifies position limits at three levels: market-wide limits (total number of shares), client/NRI/scheme of mutual fund limits, and trading member proprietary limits. These limits apply to derivative contracts and are critical for risk management and regulatory compliance.

Key Points

  • Position limits updated for 75 securities across various sectors including banking, pharma, energy, auto, IT, and infrastructure
  • Three categories of limits specified: Market Wide Limit, Client/NRI/Scheme of Mutual Fund, and TM Proprietary
  • Highest market-wide limit: Vodafone Idea Limited (12.04 billion shares)
  • Significant limits for major stocks like HDFC Bank (1.33 billion), IDFC First Bank (937 million), Bharti Airtel (679 million)
  • Limits vary significantly based on stock liquidity and market capitalization
  • Client/NRI/Mutual Fund limits are approximately 10% of market-wide limits
  • TM Proprietary limits are approximately 20% of market-wide limits

Regulatory Changes

No new regulatory framework introduced. This is a routine update of position limits based on current market conditions and open interest in derivative contracts. Position limits are periodically revised by the exchange to manage market risk and prevent concentration.

Compliance Requirements

  • Market participants must ensure their positions in equity derivatives do not exceed the specified market-wide limits
  • Clients, NRIs, and mutual fund schemes must maintain positions within the specified sub-limits
  • Trading members must monitor proprietary positions against TM proprietary limits
  • Breach of position limits may result in penalties and restrictions on trading
  • All participants should regularly verify their positions against updated limits

Important Dates

  • Circular Date: December 19, 2025
  • Effective immediately upon publication

Impact Assessment

Market Impact: Medium - affects active traders and institutional participants in equity derivatives segment across 75 securities. Large position holders may need to adjust positions if current holdings exceed new limits.

Operational Impact: Participants need to update risk management systems with new limits and monitor compliance. Brokers must ensure client positions remain within prescribed limits to avoid regulatory action.

Trading Impact: May affect hedging strategies and arbitrage positions for securities with reduced limits. Increased limits for certain stocks may provide additional trading flexibility.

Impact Justification

Regular position limit updates that affect derivatives trading risk management for 75 actively traded securities; essential for compliance but routine operational information