Description
NSE Clearing revises market-wide position limits and participant limits for CAMS in Securities Lending and Borrowing Scheme, increasing limits approximately 5-fold effective December 08, 2025.
Summary
NSE Clearing Limited has revised the Market Wide Position Limit (MWPL), Participant limits, Institutional Client limits, and Non-Institutional Client limits for CAMS in the Securities Lending and Borrowing Scheme. The new limits represent approximately a 5-fold increase across all categories and will be effective from December 08, 2025.
Key Points
- Market Wide Position Limit increased from 4,949,638 shares to 24,737,383 shares
- Participant limit increased from 494,963 shares to 2,473,738 shares
- Institutional Client limit increased from 494,963 shares to 2,473,738 shares
- Non-Institutional Client limit increased from 49,496 shares to 247,373 shares
- Circular issued in pursuance to previous circular NCL/CMPT/67763 dated April 30, 2025
- Partial modification of circular NCL/CMPT/71557 dated November 28, 2025
- Applicable for December 2025 in the Securities Lending and Borrowing Scheme
Regulatory Changes
The limits for CAMS have been revised upward across all participant categories:
Old Limits:
- Market Wide Position Limit: 4,949,638 shares
- Institutional Client Limit: 494,963 shares
- Participant Limit: 494,963 shares
- Non-Institutional Client Limit: 49,496 shares
New Limits:
- Market Wide Position Limit: 24,737,383 shares
- Institutional Client Limit: 2,473,738 shares
- Participant Limit: 2,473,738 shares
- Non-Institutional Client Limit: 247,373 shares
Compliance Requirements
- All Participants and Custodians must take note of the revised limits
- Participants must ensure their positions in CAMS under the Securities Lending and Borrowing Scheme comply with the new limits from the effective date
- Position monitoring and risk management systems should be updated to reflect the new limits
Important Dates
- Circular Date: December 05, 2025
- Effective Date: December 08, 2025
- Applicable Period: December 2025
Impact Assessment
The significant increase in position limits (approximately 5x) indicates increased liquidity and market depth for CAMS in the Securities Lending and Borrowing Scheme. This expansion:
- Provides greater flexibility for participants to take larger positions in CAMS
- Enhances institutional participation capacity in securities lending/borrowing activities
- Suggests increased availability of CAMS shares for lending or anticipated higher demand
- May improve market efficiency and price discovery for CAMS in the SLB segment
- Specifically impacts participants engaged in securities lending and borrowing operations
Impact Justification
Significant increase in position limits for CAMS in SLB scheme affects participants and institutional clients, but impacts only those engaged in securities lending/borrowing activities for this specific stock