Description

NSE updates position limits for participants, institutional clients and non-institutional clients in Securities Lending and Borrowing Scheme for August 2025.

Summary

NSE Clearing Limited has issued revised Market Wide Position Limits (MWPL) and position limits for Participants, Institutional Clients, and Non-Institutional Clients in the Securities Lending and Borrowing Scheme applicable for August 2025. The circular provides detailed limits for over 50 securities and ETFs.

Key Points

  • Monthly revision of position limits for Securities Lending and Borrowing Scheme
  • Covers Market Wide Position Limits (MWPL) for securities and ETFs
  • Sets specific limits for three categories: Participants, Institutional Clients, and Non-Institutional Clients
  • Institutional and Participant limits are set at 10% of MWPL
  • Non-Institutional Client limits are set at 1% of MWPL
  • Limits apply to individual securities including major stocks like ADANIPORTS, ADANIGREEN, ADANIPOWER

Regulatory Changes

This is a routine monthly update pursuant to earlier circular NCL/CMPT/67763 dated April 30, 2025. No fundamental regulatory changes introduced.

Compliance Requirements

  • All SLB participants must adhere to the revised position limits
  • Limits are effective for August 2025 trading month
  • Participants must ensure client positions do not exceed specified limits
  • Custodians must monitor and enforce compliance with these limits

Important Dates

  • Circular Date: July 31, 2025
  • Effective Period: August 2025
  • Reference Circular: NCL/CMPT/67763 dated April 30, 2025

Impact Assessment

Moderate impact on Securities Lending and Borrowing operations. The revised limits will affect trading capacity for participants and their clients in the SLB segment. Higher limits for securities like ALOKINDS (124+ million shares MWPL) and ADANIPOWER (96+ million shares MWPL) indicate strong borrowing demand, while lower limits for stocks like 3MINDIA (281K shares) reflect limited availability for lending.

Impact Justification

Regular monthly update of position limits affecting all SLB participants and their trading capacity