Description

Updated market-wide position limits and client limits for securities and ETFs under Securities Lending and Borrowing Scheme (SLBS).

Summary

NSE has revised the Market Wide Position Limits (MWPL), participant limits, institutional client limits, and non-institutional client limits for 67 securities and ETFs under the Securities Lending and Borrowing Scheme (SLBS). The circular provides a comprehensive table with updated position limits across four categories for each security.

Key Points

  • Revised position limits for 67 securities and ETFs under SLBS
  • Four-tier limit structure: Market Wide Position Limit, Participant Limit, Institutional Client Limit, and Non-Institutional Client Limit
  • Limits vary significantly across securities based on market capitalization and liquidity
  • Non-institutional client limits are typically 10% of participant/institutional limits
  • Includes major stocks like Adani group companies, ACC, Apollo, and various ETFs

Regulatory Changes

Updated position limits framework for Securities Lending and Borrowing Scheme with differentiated limits for various participant categories to ensure orderly market functioning and risk management.

Compliance Requirements

  • Market participants must adhere to the revised position limits immediately
  • Separate compliance for institutional and non-institutional clients
  • Participants must monitor positions against the new limits
  • Risk management systems should be updated to reflect new limits

Important Dates

Effective immediately upon circular issuance on August 29, 2025.

Impact Assessment

The revised limits will affect trading strategies and position sizing for participants in the securities lending and borrowing market. Tighter limits on some securities may reduce available lending/borrowing capacity while expanded limits on others may increase market activity. The differentiated structure ensures appropriate risk management across participant categories.

Impact Justification

Regular update of position limits affecting multiple securities under SLBS with moderate market impact