Description

Market wide position limits for stock derivatives contracts of MCX revised due to stock split, effective January 2, 2026.

Summary

ICCL has revised the market wide position limits (MWPL) for stock derivatives contracts of Multi Commodity Exchange of India Ltd (Scrip Code: 534091) effective January 2, 2026. This revision is necessitated by a stock split undertaken by MCX. The new limits apply to Stock Brokers, Foreign Portfolio Investors (Categories I & II), and Mutual Funds.

Key Points

  • Market wide position limit revised to 3,81,77,110 shares
  • Client/NRI/Scheme of Mutual Fund limit: 38,17,500 shares
  • Trading Member Proprietary limit: 76,35,000 shares
  • TM (Proprietary+Client)/FPI(Cat I)/MF limit: 1,14,53,125 shares
  • Changes effective from January 2, 2026
  • Revision due to stock split in MCX shares
  • Notice issued in partial modification of circular no. 20231229-46 dated December 29, 2023

Regulatory Changes

The circular modifies existing position limit framework for MCX derivatives to account for the corporate action (stock split). This is issued in pursuance to notice no. 20251219-72 dated December 19, 2025.

Compliance Requirements

  • Stock Brokers must adhere to revised position limits from January 2, 2026
  • Foreign Portfolio Investors (Categories I & II) must comply with new limits
  • Mutual Funds must observe the revised scheme-wise position limits
  • All entities trading in MCX stock derivatives must monitor positions against new thresholds

Important Dates

  • Notice Date: January 1, 2026
  • Effective Date: January 2, 2026

Impact Assessment

The revision increases position limits proportionally to reflect the stock split, maintaining the same effective exposure levels for market participants. This ensures continuity in trading activities while accommodating the changed share structure. Impact is limited to participants trading MCX stock derivatives. For clarifications, members can contact Krishna Patra (2272 8811) or Imran Ahmed (2272 8614) at risk.monitoring@icclindia.com.

Impact Justification

Affects position limits for stock brokers, FPIs, and mutual funds trading MCX derivatives due to corporate action, but limited to single scrip