Description

BSE announces additional exposure margin requirements for 14 securities under the Market-Wide Position Limit (MWPL) framework for December 2025.

Summary

BSE has imposed additional exposure margin requirements on 14 securities under the Market-Wide Position Limit (MWPL) framework for December 2025. This measure is a surveillance mechanism to manage concentrated positions and risk in specific securities that have reached or exceeded position limit thresholds.

Key Points

  • 14 securities subject to additional exposure margin under MWPL
  • Includes major stocks across banking, energy, pharmaceuticals, and consumer sectors
  • List includes Aurobindo Pharma, Crompton Greaves Consumer, HFCL, Vodafone Idea, IndusInd Bank, JSW Energy, LIC Housing Finance, NMDC, Patanjali Foods, Petronet LNG, PNB Housing Finance, RBL Bank, SAIL, and Sammaan Capital
  • MWPL is a risk management measure for securities with concentrated market positions

Regulatory Changes

Additional exposure margin requirements applied to the listed securities under the MWPL surveillance framework. This requires market participants holding positions in these securities to maintain higher margins, increasing capital requirements.

Compliance Requirements

  • Trading members and clearing members must ensure adequate margin collection for positions in the listed 14 securities
  • Enhanced margin requirements apply to both proprietary and client positions
  • Participants must comply with increased capital allocation for trading in these securities
  • Risk management systems must be updated to reflect the additional margin requirements

Important Dates

  • Circular Date: December 26, 2025
  • Applicable Period: December 2025

Impact Assessment

Market Impact: High - affects liquidity and trading activity in 14 actively traded securities across multiple sectors. Traders may reduce position sizes or avoid these stocks due to higher capital requirements.

Operational Impact: Brokers and trading members need to ensure adequate margin collection and may need to square off client positions if additional margins are not provided. This could lead to increased volatility in the affected securities.

Capital Impact: Increased capital lock-in for market participants holding positions in these securities, potentially reducing trading volumes and market depth in the short term.

Impact Justification

Affects margin requirements for 14 securities, directly impacting capital requirements for traders and brokers dealing in these stocks under MWPL surveillance.