What does clubbing of open position limit on MCX mean?

If multiple commodity accounts(Individual/Corporate/Partnership/HUF etc.) are opened with a different or same broker, and there are open positions in these accounts, then these positions are clubbed to determine the overall open position limit for the contract as mentioned in the SEBI circular (PDF). A penalty is levied if overall open positions exceed the exchange stipulated limit. To learn more, refer to this circular (PDF).

Exchange clubs all positions by default. If a trader wishes for the positions not to be clubbed, they must give written consent to Zerodha mentioning reasons for not clubbing the positions, and Zerodha shall forward the same to the exchange.