Description

BSE mandates additional exposure margin on 18 securities that have breached the Market Wide Position Limit (MWPL) threshold in February 2026, affecting futures and options trading across major Indian equities.

Summary

BSE has issued a circular imposing additional exposure margins on 18 securities that have crossed the Market Wide Position Limit (MWPL) threshold for February 2026. When aggregate open interest in a security’s derivatives exceeds 95% of the MWPL, exchanges are required to impose an additional exposure margin to discourage further position build-up and reduce systemic risk. This circular lists the affected scrips along with their ISIN codes and BSE scrip codes.

Key Points

  • 18 securities are subject to additional exposure margin under MWPL provisions for February 2026.
  • The measure applies to futures and options (F&O) contracts on all listed securities.
  • Additional exposure margin is levied on top of standard SPAN and exposure margins for new and existing positions.
  • The circular covers securities across banking, pharmaceuticals, energy, infrastructure, metals, and NBFC sectors.
  • Traders and members must ensure sufficient margin is available for positions in these securities.

Regulatory Changes

Under SEBI regulations and exchange bye-laws, when the aggregate open interest in a derivative contract on a security reaches or exceeds 95% of the Market Wide Position Limit, the exchange imposes an additional exposure margin. This circular formally notifies market participants of the 18 securities currently triggering this requirement in February 2026.

Compliance Requirements

  • Trading members must collect the additional exposure margin from clients holding open F&O positions in the listed 18 securities.
  • New positions opened in these securities will attract the higher margin requirement immediately.
  • Members should update their risk management systems to reflect the additional margin for these scrips.
  • Clearing members must ensure adequate collateral is maintained to cover enhanced margin obligations.

Important Dates

  • Effective Date: 20 February 2026 (date of circular issuance).
  • The additional exposure margin remains applicable until the open interest in affected securities falls below the prescribed MWPL threshold and BSE issues a withdrawal notice.

Impact Assessment

This circular has a high immediate impact on derivatives market participants. The 18 affected securities include high-volume, widely-held F&O names such as DLF, Auropharma, Bandhan Bank, NMDC, SAIL, Vodafone Idea, LIC Housing Finance, and Indus Towers. Traders with large open positions in these scrips will face increased margin calls, potentially forcing position reduction or additional capital infusion. The measure is designed to cool speculative build-up and protect market stability, but may temporarily reduce liquidity in the affected derivatives contracts.

Impact Justification

Affects margin requirements for 18 widely-traded F&O securities; MWPL-triggered additional exposure margins directly increase the cost of holding open derivative positions, impacting institutional and retail traders immediately.