The National Stock Exchange (NSE) on January 01, 2025, issued a circular regarding Position Limit Violations.
The following has been stated: -
•The NCL has updated penalties for position limit violations by trading members. A monetary penalty and additional margin based on the breach percentage will be levied for each instance, with penalties increasing after multiple violations.
•Additional margins are calculated daily and blocked from the clearing member’s collateral. The new rules apply to all position limit violations within a calendar quarter, with penalties escalating from Rs. 5,000 for the first instance to Rs. 1,00,000 from the 11th instance onwards.
The detailed circular is given in the document below.
[Circular Ref. No: 001/2025]
