On April 16, the National Stock Exchange (NSE) announced that it will be levying higher exposure margin on a number of stocks related to futures and options. After the contracts for April 2024 expire, on April 26, 2024, this framework will come into force.
The stock exchange platform stated in a circular that stocks in which the top 10 clients account for more than 20 percent of the Market Wide Position Limit (MWPL) will be subject to additional exposure margin, set at 15 percent in the equity derivatives segment.
For a certain underlying stock, the maximum number of open F&O contracts allowed is known as the Market Wide Position Limit (MWPL). The exchange establishes this cap. It is therefore the highest amount of OI that is allowed for a specific underlying stock.
