Description

NSE has revised the Market Wide Position Limits (MWPL) and participant/client limits for securities and ETFs under the Securities Lending and Borrowing Scheme (SLBS), effective for the current period.

Summary

NSE has issued revised Market Wide Position Limits (MWPL) and corresponding Participant, Institutional Client, and Non-Institutional Client limits for securities and ETFs eligible under the Securities Lending and Borrowing Scheme (SLBS). This is a periodic update covering 67+ securities including equities and ETFs listed on NSE.

Key Points

  • Market Wide Position Limits (MWPL) have been revised for all listed securities and ETFs under SLBS.
  • Participant limit is set at 10% of the MWPL for each security.
  • Institutional Client limit equals the Participant limit (10% of MWPL).
  • Non-Institutional Client limit is set at 1% of the MWPL for each security.
  • Large-cap securities such as ADANIPOWER (MWPL: 482,906,787), ALOKINDS (124,139,522), and ABCAPITAL (82,246,518) have the highest position limits.
  • ETFs including ABSLBANETF, ALPHAETF, ALPL30IETF, and others are also covered under revised limits.

Regulatory Changes

This circular revises the applicable MWPL and tiered client limits under the SLBS framework. The limits are recalculated periodically based on changes in outstanding shares, market conditions, or regulatory directives. The four-tier limit structure remains unchanged:

  1. Market Wide Position Limit (MWPL)
  2. Participant Limit = 10% of MWPL
  3. Institutional Client Limit = 10% of MWPL
  4. Non-Institutional Client Limit = 1% of MWPL

Compliance Requirements

  • All SLBS participants (stock brokers, custodians, clearing members) must ensure their open positions in securities lending and borrowing do not exceed the revised limits.
  • Institutional clients must adhere to the updated institutional client limits.
  • Non-institutional clients must comply with the more restrictive 1% MWPL cap.
  • Participants must update their internal risk systems to reflect the new position limits immediately upon notification.

Important Dates

  • Circular Date: 2026-03-30
  • Effective Date: As notified by NSE (typically immediate or next trading day upon issuance).

Impact Assessment

This is a routine administrative update with moderate operational impact. Participants actively engaged in SLBS will need to review and potentially rebalance open positions if current exposures exceed the revised limits. The update covers a broad universe of 67+ securities and ETFs, requiring systematic limit updates across risk management systems. No new compliance obligations are introduced; the impact is limited to entities with active SLBS positions that may breach the newly revised thresholds. Securities with significantly changed MWPLs warrant priority review by participants.

Impact Justification

Routine periodic revision of SLBS position limits across a broad set of securities and ETFs. Affects participants engaged in securities lending/borrowing but does not represent a structural policy change.