Description

ICCL updates the revised list of 33 eligible banks for exposure through Cash, FDs and Bank Guarantees as per SEBI circular criteria.

Summary

Indian Clearing Corporation Ltd (ICCL) has issued an updated list of 33 banks that are eligible for the purpose of exposure through Cash, Fixed Deposits (FDs), and Bank Guarantees (BGs). This update follows SEBI circular SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/65 dated May 29, 2024, and continues from ICCL Circular 20250826-7 dated August 26, 2025. The eligible banks are selected based on criteria specified in Section 3.2 of the SEBI Circular.

Key Points

  • Updated list of 33 eligible banks for collateral exposure purposes
  • Applies to exposure through Cash, Fixed Deposits, and Bank Guarantees
  • List includes major public sector banks, private sector banks, and foreign banks operating in India
  • Banks selected per Section 3.2 criteria of SEBI circular SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/65
  • Applicable to all Members, Custodians, PCM (Professional Clearing Members), and Banks

Regulatory Changes

This circular updates the list of acceptable banks for collateral purposes. The 33 eligible banks include:

Public Sector Banks: State Bank of India, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, IDBI Bank, Indian Bank, Indian Overseas Bank, Punjab and Sindh Bank, Punjab National Bank, UCO Bank, Union Bank of India

Private Sector Banks: AU Small Finance Bank Ltd, Axis Bank Ltd, HDFC Bank Ltd, ICICI Bank Ltd, IDFC First Bank Ltd, IndusInd Bank Ltd, Karur Vysya Bank Ltd, Kotak Mahindra Bank Ltd, The Federal Bank Ltd, The South Indian Bank

Foreign Banks: Barclays Bank PLC, Citibank N.A., DBS Bank, Deutsche Bank AG, HSBC Bank Ltd, JP Morgan Chase Bank N.A., Mizuho Bank Ltd, MUFG Bank Ltd, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation

Compliance Requirements

  • All Members, Custodians, Professional Clearing Members (PCM), and Banks must take note of the revised bank list
  • Only exposure through Cash, FDs, and BGs from the listed 33 banks will be accepted by ICCL
  • Members must ensure their collateral arrangements comply with the updated eligible bank list
  • Any existing collateral arrangements with non-listed banks may need to be reviewed and adjusted

Important Dates

  • Notice Date: November 14, 2025
  • Effective Date: Immediately (as on today)
  • Reference SEBI Circular Date: May 29, 2024
  • Previous ICCL Circular Date: August 26, 2025

Impact Assessment

Market Impact: Medium - This is primarily an administrative update that affects the operational aspects of collateral management. Members using banking instruments as collateral from the eligible list will see no disruption.

Operational Impact: Members who may have collateral exposure through banks not on this list will need to restructure their collateral arrangements. This could involve transferring FDs, obtaining new Bank Guarantees, or adjusting cash placements to eligible institutions.

Risk Management Impact: The updated list ensures that only banks meeting SEBI’s prescribed criteria are used for collateral purposes, enhancing the overall credit quality and risk profile of the clearing corporation’s collateral base.

Contact Information: For queries, members can contact ICCL’s Risk Department at risk.monitoring@icclindia.com or call +91-22-22728759/5733/8811/5059.

Impact Justification

Administrative update to eligible bank list for collateral purposes. Affects members using banking instruments as collateral but does not change fundamental market structure or create immediate compliance burden.