Description

BSE revises market-wide position limits for Kotak Mahindra Bank stock derivatives following stock split, effective January 14, 2026.

Summary

BSE has revised the Market Wide Position Limits (MWPL) for stock derivatives contracts of Kotak Mahindra Bank Ltd. (Scrip Code: 500247) following a stock split. The new limits apply to Stock Brokers, Foreign Portfolio Investors (FPIs) Categories I & II, and Mutual Funds, effective from January 14, 2026. This revision partially modifies the previous circular dated December 29, 2023.

Key Points

  • Market-wide limit revised to 78,10,25,350 shares for Kotak Mahindra Bank derivatives
  • Client/NRI/Scheme of Mutual Fund limit: 7,81,02,000 shares
  • Trading Member Proprietary limit: 15,62,04,000 shares
  • Combined TM (Proprietary+Client)/FPI(Cat I)/MF limit: 23,43,06,000 shares
  • Revision necessitated by stock split of Kotak Mahindra Bank
  • Circular issued in pursuance to notice dated December 19, 2025

Regulatory Changes

This circular partially modifies circular no. 20231229-46 dated December 29, 2023, updating only the position limits for Kotak Mahindra Bank Ltd. The regulatory framework for MWPL remains unchanged; only the numerical limits have been adjusted to account for the increased number of shares post-split.

Compliance Requirements

  • Stock Brokers: Must adhere to revised position limits when trading Kotak Mahindra Bank derivatives
  • Foreign Portfolio Investors (Category I & II): Must comply with new limits of 23,43,06,000 shares
  • Mutual Funds: Must ensure positions do not exceed specified limits
  • Trading Members: Proprietary positions capped at 15,62,04,000 shares
  • Clients/NRIs/MF Schemes: Individual position limits set at 7,81,02,000 shares

Important Dates

  • Notice Date: January 13, 2026
  • Effective Date: January 14, 2026
  • Reference Notice: December 19, 2025 (Notice No. 20251219-72)
  • Modified Circular: December 29, 2023 (Circular No. 20231229-46)

Impact Assessment

Market Impact: The revised limits proportionally adjust for the stock split, maintaining the same effective position capacity relative to the company’s market capitalization. This ensures continuity in derivative trading without restricting market participants.

Operational Impact: Market participants holding derivatives positions in Kotak Mahindra Bank must verify compliance with new numerical limits. Risk management systems need to be updated to reflect the revised thresholds before January 14, 2026.

Trading Impact: The adjustment maintains market liquidity and derivative market functionality for Kotak Mahindra Bank while accounting for the increased share count post-split. No material change to trading strategies is expected as limits scale proportionally.

Impact Justification

Position limit revisions affect derivative traders in Kotak Mahindra Bank but are administrative adjustments due to stock split rather than policy changes