Description

NSE Clearing Limited revises Market Wide Position Limits (MWPL) and participant, institutional client, and non-institutional client position limits for Securities and ETFs under the Securities Lending and Borrowing Scheme (SLBS) for May 2026.

Summary

NSE Clearing Limited (NCL) has issued revised Market Wide Position Limits (MWPL) and position limits for Participants, Institutional Clients, and Non-Institutional Clients under the Securities Lending and Borrowing Scheme (SLBS) for the month of May 2026. This circular (Ref. No. 044/2026, Download Ref No: NCL/CMPT/74025) supersedes the previous limits set under NCL Circular No. 037/2025 (NCL/CMPT/67763) dated April 30, 2025.

Key Points

  • Revised MWPL and tiered position limits are effective for May 2026 across hundreds of securities and ETFs eligible under SLBS.
  • Four limit tiers apply: Market Wide Position Limit (MWPL), Participant Limit (10% of MWPL), Institutional Client Limit (10% of MWPL), and Non-Institutional Client Limit (1% of MWPL).
  • Annexure I contains stock-specific limits in number of shares for each eligible security and ETF.
  • All Participants and Custodians are advised to take note of the revised limits immediately.
  • Issued by Anil Suvarna, Associate Vice President, NSE Clearing Limited.

Regulatory Changes

No new regulatory framework has been introduced. This is a periodic revision of quantitative position limits under the existing SLBS framework. The tiered structure (MWPL → Participant → Institutional Client → Non-Institutional Client at 10%/10%/1% of MWPL respectively) remains unchanged.

Compliance Requirements

  • All SLBS Participants and Custodians must adhere to the revised position limits specified in Annexure I with effect from May 2026.
  • Participants must ensure their own positions and those of their institutional and non-institutional clients do not exceed the applicable tier limits for each security.
  • Any existing positions that exceed revised limits must be reviewed and adjusted in line with the new caps.

Important Dates

  • Circular Date: April 30, 2026
  • Effective Period: May 2026
  • Reference Circular Superseded: NCL Circular No. 037/2025 (NCL/CMPT/67763), dated April 30, 2025

Impact Assessment

This is a routine monthly update with moderate operational impact for SLBS participants and custodians. Position limits vary by security and reflect updated free-float and market data. Participants managing large lending/borrowing books across the eligible securities universe — including high-volume names such as ADANIPOWER (MWPL: 482,906,787 shares), ADANIPORTS (73,676,286), ABCAPITAL (82,480,614), and ADANIGREEN (61,877,951) — must recalibrate their exposure checks for May 2026. ETFs such as ABSLBANETF and ALPL30IETF are also included. No systemic market disruption is expected; this is standard limit maintenance.

Impact Justification

Routine monthly revision of SLBS position limits effective May 2026. Operationally significant for SLBS participants and custodians managing lending/borrowing positions across a broad universe of securities and ETFs, but represents no policy change.