Description
NSE revises market wide position limits and trading member-wise position limits for HDFC Bank derivatives effective August 26, 2025.
Summary
NSE Clearing Limited has revised the Market Wide Position Limits (MWPL), Trading Member-wise position limits, FII/FPI and Mutual Fund position limits for HDFC BANK LIMITED derivatives. The new limits are effective from trade date August 26, 2025, modifying previous circulars from April 29 and July 31, 2025.
Key Points
- Market Wide Position Limit increased to 2,655,803,964 shares
- Overall Stock Limit for TM, FII/FPI (Category I) & MF set at 531,160,300 shares
- FPI Category II (other than individuals, family offices and corporates) limit: 265,579,600 shares
- FPI Category II (individuals, family offices and corporates) limit: 132,789,800 shares
- Changes effective from August 26, 2025 trade date
Regulatory Changes
This circular partially modifies:
- Circular no. 043/2025 dated April 29, 2025
- Circular no. 096/2025 dated July 31, 2025
The revision updates position limits framework for HDFC Bank derivatives across different participant categories.
Compliance Requirements
- All trading members must adhere to revised position limits from August 26, 2025
- FII/FPI participants must comply with category-specific limits
- Mutual funds must observe the overall stock limit of 531,160,300 shares
- Position monitoring systems should be updated to reflect new limits
Important Dates
- Effective Date: August 26, 2025 (trade date)
- Circular Date: August 25, 2025
Impact Assessment
The revised limits provide increased capacity for institutional participation in HDFC Bank derivatives. The substantial increase in market-wide position limits may enhance liquidity and trading volumes. Different limits for FPI categories ensure appropriate risk management while facilitating institutional access to HDFC Bank derivatives trading.
Impact Justification
Moderate impact on HDFC Bank derivatives trading with revised position limits affecting institutional participants