Description

Updated list of 32 banks eligible as collateral for clearing corporations as per SEBI circular requirements.

Summary

Indian Clearing Corporation Ltd (ICCL) has issued a revised list of 32 banks eligible as collateral under SEBI’s clearing corporation norms. This update follows SEBI circular SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/65 dated May 29, 2024, and continues from ICCL’s previous circular dated March 20, 2025.

Key Points

  • 32 banks currently meet SEBI’s Section 3.2 criteria for selection as eligible collateral
  • List includes major Indian banks (SBI, HDFC, ICICI, Axis) and international banks (Citibank, HSBC, Deutsche Bank)
  • Covers public sector, private sector, and foreign banks
  • Small finance banks like AU Small Finance Bank are included
  • Notice applies to all members, custodians, PCMs, and banks

Regulatory Changes

This circular provides an updated list of eligible banks based on current compliance with SEBI’s criteria for acceptable collaterals and exposure limits for clearing corporations. The list represents banks that meet the regulatory requirements as of August 26, 2025.

Compliance Requirements

  • Members must take note of the revised eligible bank list
  • Only banks listed in this circular can be used as collateral for clearing operations
  • Banks must continue to meet SEBI’s Section 3.2 criteria for ongoing eligibility

Important Dates

  • Notice Date: August 26, 2025
  • Effective immediately for collateral acceptance
  • References SEBI circular from May 29, 2024
  • Continues from ICCL circular dated March 20, 2025

Impact Assessment

This update ensures clearing operations use only SEBI-compliant banks as collateral, maintaining system stability and regulatory compliance. The comprehensive list of 32 eligible banks provides sufficient options for clearing members while maintaining risk management standards.

Impact Justification

Operational update affecting clearing operations and bank eligibility for collateral