Description
NSE Clearing revises position limits for KOTAKBANK and AJMERA in Securities Lending and Borrowing Scheme, increasing limits by approximately 5 times effective January 16, 2026.
Summary
NSE Clearing Limited has revised the Market Wide Position Limit (MWPL), Participant limits, Institutional client limits, and Non-Institutional client limits for KOTAKBANK and AJMERA securities in the Securities Lending and Borrowing Scheme for January 2026. The new limits represent approximately a 5-fold increase and will be effective from January 16, 2026.
Key Points
- KOTAKBANK MWPL increased from 147,395,111 shares to 736,975,558 shares
- AJMERA MWPL increased from 1,250,438 shares to 6,252,194 shares
- All limit categories (Participant, Institutional, Non-Institutional) increased proportionally by approximately 5 times
- Changes effective from January 16, 2026
- Circular issued in pursuance to NCL/CMPT/67763 dated April 30, 2025 and partial modification of NCL/CMPT/72105 dated December 31, 2025
Regulatory Changes
KOTAKBANK Limits (Effective January 16, 2026)
- Market Wide Position Limit: 736,975,558 shares (previous: 147,395,111)
- Institutional Client Limit: 73,697,555 shares (previous: 14,739,511)
- Participant Limit: 73,697,555 shares (previous: 14,739,511)
- Non-Institutional Client Limit: 7,369,755 shares (previous: 1,473,951)
AJMERA Limits (Effective January 16, 2026)
- Market Wide Position Limit: 6,252,194 shares (previous: 1,250,438)
- Institutional Client Limit: 625,219 shares (previous: 125,043)
- Participant Limit: 625,219 shares (previous: 125,043)
- Non-Institutional Client Limit: 62,521 shares (previous: 12,504)
Compliance Requirements
- All participants and custodians must take note of the revised position limits
- Participants must ensure their positions in KOTAKBANK and AJMERA under the SLB scheme comply with new limits from January 16, 2026
- Institutional and Non-Institutional clients must adhere to their respective revised limits
Important Dates
- Circular Issue Date: January 14, 2026
- Effective Date: January 16, 2026
- Applicable Period: January 2026
Impact Assessment
Market Impact
The significant increase in position limits (5x multiplication) for both KOTAKBANK and AJMERA will enhance liquidity in the Securities Lending and Borrowing Scheme for these securities. This allows for greater borrowing capacity and potentially improved market efficiency.
Operational Impact
- Participants will have substantially higher capacity to take positions in these securities through the SLB mechanism
- Institutional clients can now borrow up to 73.7 million shares of KOTAKBANK (vs. 14.7 million previously)
- Enhanced flexibility for market participants engaged in hedging, arbitrage, or short-selling strategies
- May lead to increased activity in these securities within the SLB framework
Impact Justification
Significant increase in position limits for two securities in SLB scheme affects market participants' borrowing capacity but impacts only specific stocks