Description

BSE announces changes to cross margin weightages for index constituents following the demerger of Hindustan Unilever Limited, with revised weightages to be implemented from December 09, 2025.

Summary

Indian Clearing Corporation Limited (ICCL) has announced adjustments to cross margin weightages applicable to index constituents following the demerger of Hindustan Unilever Limited (scrip code: 500696). The stock will be temporarily excluded from cross margin benefit calculations starting December 04, 2025, with revised weightages for all index constituents to be published based on December 05, 2025 closing prices and implemented from December 09, 2025.

Key Points

  • Hindustan Unilever Limited (500696) will be excluded from cross margin benefit computation on December 04, 2025
  • Weightages for other index constituents remain unchanged initially
  • Revised weightages for all indices will be published based on HUL’s closing price on December 05, 2025
  • Members must sync their portfolios as per revised weightages by end of day December 08, 2025
  • This circular follows reference circular 20251127-59 dated November 27, 2025
  • Issued by Chief Risk Officer Sushant Majhi on behalf of ICCL

Regulatory Changes

No new regulatory framework changes. This is an operational adjustment to existing cross margin benefit calculations to accommodate the corporate action (demerger) in Hindustan Unilever Limited.

Compliance Requirements

  • All Members: Must sync their portfolios according to revised weightages by December 08, 2025 (end of day)
  • All Members: Must note the temporary exclusion of HUL from cross margin calculations starting December 04, 2025
  • All Members: Must implement revised weightages in their systems before December 09, 2025 (begin of day)

Important Dates

  • December 03, 2025: Circular issuance date
  • December 04, 2025: HUL excluded from cross margin benefit computation
  • December 05, 2025: Closing price basis for revised weightage calculation
  • December 08, 2025 (EOD): Deadline for members to sync portfolios per revised weightages
  • December 09, 2025 (BOD): Revised weightages become effective

Impact Assessment

Market Impact: Medium - affects derivatives market participants who utilize cross margin benefits for positions involving Hindustan Unilever Limited and related index constituents.

Operational Impact: Requires members to adjust their portfolio configurations and margin calculation systems within a tight timeline (5 business days). The temporary exclusion period (December 04-08) may result in higher margin requirements for affected positions.

Risk Management: The phased implementation approach (temporary exclusion followed by revised weightages) ensures orderly adjustment to the demerger event while maintaining risk management integrity.

Contact for Assistance: Mr. Sahil Shah (2272 8902) or Mr. Imran Ahmed (2272 8614) at risk.monitoring@icclindia.com

Impact Justification

Affects cross margin calculations for derivatives market participants with positions in Hindustan Unilever and related indices. Requires portfolio adjustments but is a scheduled administrative change following corporate action.