Description

NSE Clearing announces position limits for four new securities (BAJAJHLDNG, PREMIERENE, SWIGGY, WAAREEENER) effective December 31, 2025, covering market-wide, trading member, FII/FPI, and mutual fund limits.

Summary

NSE Clearing Limited has announced the applicable position limits for four newly introduced individual securities in the Futures & Options segment. The circular specifies market-wide position limits (MWPL), trading member-wise position limits, FII/FPI (Category I & II) limits, mutual fund position limits, trading member proprietary limits, and client level limits for BAJAJHLDNG, PREMIERENE, SWIGGY, and WAAREEENER. These limits will be effective from the trade date December 31, 2025.

Key Points

  • Four new securities introduced for F&O trading: BAJAJHLDNG, PREMIERENE, SWIGGY, and WAAREEENER
  • Circular issued in partial modification of circular no. 125/2025 (NCL/CMPT/70316) dated September 22, 2025
  • Separate limits defined for client positions, proprietary positions, FPI categories, and mutual funds
  • SWIGGY has the highest market-wide position limit at 375,529,891 shares
  • Different position limits apply for FPI Category II based on entity type (individuals/family offices/corporates vs. others)
  • Limits are structured with client limits at 10%, proprietary at 20%, and combined TM/FPI Category I/MF at 30% of MWPL

Regulatory Changes

This circular introduces position limits for four new individual securities in the F&O segment, partially modifying the previous circular dated September 22, 2025. The limits follow NSE’s standard framework with hierarchical position limits:

  • Market-wide position limits (MWPL) serve as the base
  • Client limits set at approximately 10% of MWPL
  • Proprietary limits set at approximately 20% of MWPL
  • Combined TM/FPI Category I/MF limits at approximately 30% of MWPL
  • FPI Category II limits differentiated based on entity classification

Compliance Requirements

  • All trading members must adhere to the specified position limits for the four securities
  • Client positions cannot exceed the overall stock limit for clients
  • Proprietary trading desks must comply with proprietary position limits
  • FII/FPI entities must monitor positions based on their category classification (Category I, Category II - others, Category II - individuals/family offices/corporates)
  • Mutual funds must ensure positions remain within specified limits
  • Combined trading member positions (client + proprietary) cannot exceed the overall TM limit

Important Dates

  • Circular Issue Date: December 30, 2025
  • Effective Date: December 31, 2025 (trade date)
  • Reference Circular: 043/2025 dated April 29, 2025
  • Modified Circular: 125/2025 dated September 22, 2025

Impact Assessment

Market Impact: The introduction of F&O contracts for these four securities expands derivative trading opportunities, particularly notable for SWIGGY with its substantial position limit of over 375 million shares. This allows greater hedging and speculation opportunities for market participants.

Institutional Impact: FII/FPI and mutual fund investors gain new instruments for portfolio management and hedging. The tiered limits for different FPI categories ensure balanced participation while preventing concentration risk.

Trading Member Impact: Trading members can offer derivative products on these securities to clients while managing proprietary positions within specified limits. The 30% combined limit for TM positions provides adequate flexibility for market-making activities.

Risk Management: The structured limit framework helps maintain market stability by preventing excessive concentration in any single security while allowing sufficient liquidity for efficient price discovery.

Impact Justification

Introduces trading limits for four new F&O securities, affecting traders, institutions, and proprietary desks. Medium impact as it expands derivative trading options but applies to limited securities.