India reviews SBL position limits
21 November 2017 New Delhi
Image: Shutterstock
The Securities and Exchange Board (SEBI) of India has altered its securities lending rulebook, following market calls for change.
As of 1 January 2018, position limits of borrowed shares will be capped at 10 percent of the free float capital of the company in terms of the number of shares.
The rule change effects both institutional investors and clearing members.
Client position level limit will be 1 percent.
SEBI has also changed the tenure of contracts so they cannot exceed 12 months.
A framework for securities lending was first specified in 2008.
As of 1 January 2018, position limits of borrowed shares will be capped at 10 percent of the free float capital of the company in terms of the number of shares.
The rule change effects both institutional investors and clearing members.
Client position level limit will be 1 percent.
SEBI has also changed the tenure of contracts so they cannot exceed 12 months.
A framework for securities lending was first specified in 2008.
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