Revised Applicable MWPL, Participant, Institutional Client and Non-Institutional Client Limits for Securities and ETF - SLBS

Description

NSE Clearing Limited has announced revised Market Wide Position Limits (MWPL) and position limits for Participants, Institutional Clients, and Non-Institutional Clients in the Securities Lending and Borrowing Scheme for November 2025.

Summary

NSE Clearing Limited has issued revised Market Wide Position Limits (MWPL) and position limits applicable to Participants, Institutional Clients, and Non-Institutional Clients for the Securities Lending and Borrowing Scheme (SLBS) for the month of November 2025. This circular updates the position limits pursuant to NCL Circular No. 037/2025 dated April 30, 2025. The limits are specified in Annexure I and cover over 50 securities and ETFs.

Key Points

• Revised position limits effective for November 2025 for SLBS
• Four categories of limits specified: Market Wide Position Limit (MWPL), Participant limit, Institutional Client limit, and Non-Institutional Client limit
• Limits apply to multiple securities including major stocks like ADANIPOWER (482.9 million shares MWPL), ALOKINDS (124.1 million shares MWPL), and APOLLOTYRE (39.9 million shares MWPL)
• Participant limits set at 10% of MWPL
• Institutional Client limits also set at 10% of MWPL
• Non-Institutional Client limits set at 1% of MWPL
• Circular reference: NCL/CMPT/71091, Circular Ref. No: 118/2025

Regulatory Changes

This is a monthly update to position limits in the Securities Lending and Borrowing Scheme. No fundamental regulatory changes are introduced. The circular follows the framework established in NCL Circular No. 037/2025 dated April 30, 2025.

Compliance Requirements

• All Participants and Custodians must take note of the revised position limits
• Participants must ensure their positions and client positions do not exceed the specified limits for November 2025
• Institutional clients are subject to a limit of 10% of MWPL for each security
• Non-institutional clients are subject to a limit of 1% of MWPL for each security
• Market-wide positions across all participants cannot exceed the MWPL for each security

Important Dates

• Circular Date: October 31, 2025
• Applicable Period: November 2025
• Reference to previous circular: NCL Circular No. 037/2025 dated April 30, 2025

Impact Assessment

Operational Impact: Participants in the Securities Lending and Borrowing Scheme must monitor their positions and client positions against the updated limits for November 2025. The tiered limit structure (MWPL → Participant → Institutional Client → Non-Institutional Client at 100% → 10% → 10% → 1%) ensures risk management and prevents concentration.

Market Impact: Medium impact on SLBS participants. The limits vary significantly across securities based on their free float and liquidity. Securities with larger MWPL like ADANIPOWER (482.9M shares), ALOKINDS (124.1M shares), and APOLLOTYRE (39.9M shares) offer more flexibility for lending/borrowing activities compared to stocks with smaller limits like ABBOTINDIA (531,525 shares) or AKZOINDIA (1.4M shares).

Participant Action Required: Review current positions in SLBS against new November 2025 limits and adjust if necessary to ensure compliance.

Impact Justification

Monthly update of position limits for SLBS participants affecting multiple securities. Routine operational circular with medium impact on participants engaged in securities lending and borrowing activities.