Description
NSE Clearing revises Securities Lending and Borrowing position limits for NUVAMA with 5x increase in all limits effective December 29, 2025.
Summary
NSE Clearing Limited has revised the Market Wide Position Limit (MWPL) and position limits for Participants, Institutional Clients, and Non-Institutional Clients for NUVAMA under the Securities Lending and Borrowing (SLB) Scheme. All limits have been increased approximately 5-fold, effective from December 29, 2025. This revision is in pursuance to circular NCL/CMPT/67763 dated April 30, 2025, with partial modification of circular NCL/CMPT/71557 dated November 28, 2025.
Key Points
- Market Wide Position Limit increased from 1,635,690 shares to 8,178,452 shares (5x increase)
- Participant Limit increased from 163,569 shares to 817,845 shares (5x increase)
- Institutional Client Limit increased from 163,569 shares to 817,845 shares (5x increase)
- Non-Institutional Client Limit increased from 16,356 shares to 81,784 shares (5x increase)
- Changes applicable only to NUVAMA symbol
- Effective date: December 29, 2025
Regulatory Changes
This circular modifies the position limits framework for NUVAMA in the Securities Lending and Borrowing Scheme. The revision represents a substantial increase in lending and borrowing capacity across all participant categories, indicating increased availability or demand for NUVAMA securities in the SLB market.
Compliance Requirements
- All Participants and Custodians must take note of the revised limits
- Position monitoring systems should be updated to reflect new limits effective December 29, 2025
- Participants must ensure client positions remain within the revised Non-Institutional Client Limit of 81,784 shares
- Institutional clients subject to revised limit of 817,845 shares per client
Important Dates
- Circular Date: December 26, 2025
- Effective Date: December 29, 2025
- Applicable Period: December 2025 onwards
Impact Assessment
The 5-fold increase in position limits significantly enhances the capacity for securities lending and borrowing activities in NUVAMA. This expansion will:
- Enable larger institutional players to increase their SLB positions substantially
- Provide greater flexibility for participants in managing their lending/borrowing requirements
- Potentially improve liquidity in NUVAMA securities through enhanced SLB participation
- Allow non-institutional clients to increase positions from 16,356 to 81,784 shares
The revision suggests either increased floating stock availability or regulatory comfort with higher SLB activity levels for this security. Participants with existing SLB positions in NUVAMA can now scale up their operations significantly.
Impact Justification
Significant 5x increase in SLB position limits for NUVAMA participants and clients, affecting trading capacity but limited to single stock