Description

NSE revises market-wide position limits and client limits for LLOYDSENT and VRLLOG securities in the Securities Lending and Borrowing Scheme effective August 18, 2025.

Summary

NSE Clearing Limited has revised the Market Wide Position Limit (MWPL), Participant limits, Institutional client limits, and Non-Institutional client limits for LLOYDSENT and VRLLOG securities in the Securities Lending and Borrowing Scheme, effective August 18, 2025.

Key Points

  • LLOYDSENT market-wide position limit increased from 33,185,707 to 36,289,080 shares
  • VRLLOG market-wide position limit increased from 3,477,752 to 6,955,504 shares
  • All participant and client category limits increased proportionally
  • Changes apply to Securities Lending and Borrowing Scheme operations
  • Revision follows previous circulars from April 30, 2025 and July 31, 2025

Regulatory Changes

LLOYDSENT Limit Changes:

  • Market Wide Position Limit: 33,185,707 → 36,289,080 shares (+9.3%)
  • Institutional Client Limit: 3,318,570 → 3,628,908 shares
  • Participant Limit: 3,318,570 → 3,628,908 shares
  • Non-Institutional Client Limit: 331,857 → 362,890 shares

VRLLOG Limit Changes:

  • Market Wide Position Limit: 3,477,752 → 6,955,504 shares (+100%)
  • Institutional Client Limit: 347,775 → 695,550 shares
  • Participant Limit: 347,775 → 695,550 shares
  • Non-Institutional Client Limit: 34,777 → 69,555 shares

Compliance Requirements

  • All participants and custodians must adhere to the revised position limits
  • Limits apply to Securities Lending and Borrowing Scheme transactions
  • Participants must ensure compliance with new limits for both institutional and non-institutional clients

Important Dates

  • Effective Date: August 18, 2025
  • Circular Date: August 14, 2025
  • Application Period: August 2025 month

Impact Assessment

The revision significantly increases position limits for both securities, with VRLLOG seeing a 100% increase in market-wide limits. This expansion provides greater flexibility for Securities Lending and Borrowing activities and may indicate increased market demand or liquidity requirements for these securities. The proportional increases across all participant categories maintain the existing risk distribution structure while accommodating higher trading volumes.

Impact Justification

Moderate impact as it affects position limits for specific securities in SLB scheme but limited to two stocks