Market Wide Position Limit (MWPL)

What is MWPL?

MWPL refers to Market Wide Position Limit which is the maximum allowable open interest across the entire market for a Stock's Futures and Options contracts. The open interest is measured in terms of Future equivalent open interest or delta based open interest.

The Future Equivalent open interest (FutEq OI) is calculated by aggregating the change in price (delta) associated with the position.

New MWPL methodology:

SEBI has decided to revise the formulation of MWPL. Same will be calculated by CC as the lower of:

a. The lower of:

15% of the free-float

65 times market wide Average Daily Delivery Value (ADDV) (in terms of quantity)

b. With a minimum floor of 10% free float.

Dissemination:

The MWPL calculated shall be disseminated by Clearing Corporations (CC) on their website, details about computation methodology are available in Annexure 2 of Exchange Circulars NCL/CMPT/70085, NSE/SURV/71090 & 20251031-63