Description

NSE Clearing revises market-wide position limits, trading member limits, and FII/FPI & mutual fund position limits for Kotak Mahindra Bank effective January 14, 2026.

Summary

NSE Clearing Limited has issued revised position limits for KOTAK MAHINDRA BANK LIMITED (KOTAKBANK) in the Futures & Options segment. The circular updates market-wide position limits, trading member-wise position limits, FII/FPI limits (Category I & II), mutual fund position limits, trading member proprietary limits, and client-level limits. These revised limits will be effective from the trade date January 14, 2026.

Key Points

  • Market Wide Position Limit set at 781,025,350 shares
  • Overall Stock Limit for Client: 78,102,000 shares
  • Overall Stock Limit for Proprietary: 156,204,000 shares
  • Overall Stock Limit for TM (Client + Proprietary), FPI Category I & MF: 234,306,000 shares
  • FPI Category II (other than individuals, family offices and corporates): 156,204,000 shares
  • FPI Category II (individuals, family offices and corporates): 78,102,000 shares
  • Circular issued in pursuance to circular no. 043/2025 dated April 29, 2025
  • Partial modification of circular no. 166/2025 dated December 22, 2025

Regulatory Changes

This circular modifies previously issued position limits for KOTAKBANK in the F&O segment. The revision updates all categories of position limits including market-wide limits, trading member limits, institutional investor limits (FII/FPI and mutual funds), and distinguishes between different FPI categories based on investor type.

Compliance Requirements

  • All trading members must adhere to the revised position limits from January 14, 2026
  • Trading members must ensure client positions do not exceed 78,102,000 shares
  • Proprietary trading positions must not exceed 156,204,000 shares
  • Combined TM positions (client + proprietary) must stay within 234,306,000 shares
  • FII/FPI Category I and mutual funds must comply with 234,306,000 share limit
  • FPI Category II entities (non-individual) limited to 156,204,000 shares
  • FPI Category II (individuals, family offices, corporates) limited to 78,102,000 shares

Important Dates

  • Circular Date: January 13, 2026
  • Effective Date: January 14, 2026 (trade date)

Impact Assessment

This revision impacts all participants trading in KOTAKBANK futures and options contracts. Trading members, institutional investors (FIIs/FPIs), mutual funds, and proprietary traders must adjust their positions to comply with the new limits. The differentiation in FPI Category II limits based on investor type provides more granular control over position concentration. Members need to monitor positions closely to ensure compliance from the effective date to avoid regulatory penalties.

Impact Justification

Routine position limit revision for a major bank stock affecting F&O traders, institutional investors, and proprietary trading desks