Description

Cross margin weightages will be adjusted for index constituents following the demerger of Hindustan Unilever Limited (500696), with exclusion effective December 4, 2025 and revised weightages from December 9, 2025.

Summary

The Indian Clearing Corporation Limited has announced adjustments to cross margin weightages for index constituents following the demerger of Hindustan Unilever Limited (scrip code 500696). The changes will be implemented in phases: Hindustan Unilever will be excluded from cross margin benefit computation on December 4, 2025, revised weightages will be published on December 5, 2025 based on closing prices, and the new weightages will become effective from December 9, 2025. Members must synchronize their portfolios according to the revised weightages by end of day December 8, 2025.

Key Points

  • Hindustan Unilever Limited (500696) will be excluded from cross margin benefit computation effective December 4, 2025
  • Weightages for other index constituents will remain unchanged initially
  • Revised weightages for indices will be published on December 5, 2025 based on HUL’s closing price
  • New weightages will be applicable from December 9, 2025 (beginning of day)
  • Members must sync portfolios per revised weightages by December 8, 2025 (end of day)
  • This circular references previous circular no. 20251127-59 dated November 27, 2025

Regulatory Changes

Modification to the methodology for calculating cross margin benefits in the derivatives segment. The adjustment process involves a two-step approach: immediate exclusion of the demerged entity followed by recalibration of weightages for remaining index constituents based on market prices post-demerger.

Compliance Requirements

  • All members must take note of the exclusion of Hindustan Unilever Limited from cross margin benefit calculations
  • Members are required to synchronize their portfolios according to the revised weightages by December 8, 2025, end of day
  • Members should monitor the publication of revised weightages on December 5, 2025
  • Portfolio adjustments must be completed before the new weightages become effective on December 9, 2025

Important Dates

  • December 3, 2025: Circular issued (Notice No. 20251203-17)
  • December 4, 2025: Hindustan Unilever Limited excluded from cross margin benefit computation
  • December 5, 2025: Revised weightages for indices to be published based on HUL closing price
  • December 8, 2025 (EOD): Deadline for members to sync portfolios per revised weightages
  • December 9, 2025 (BOD): Revised weightages become effective

Impact Assessment

The demerger of Hindustan Unilever Limited impacts the derivatives segment’s cross margin benefit calculations. Members holding positions in Hindustan Unilever or other constituents of affected indices will need to reassess their margin requirements and portfolio allocations. The phased implementation allows for market price discovery before finalizing the revised weightages, ensuring fair recalibration. Members must ensure timely portfolio synchronization to avoid potential margin shortfalls when the new weightages take effect. The exclusion of a major constituent like Hindustan Unilever may result in proportional increases in weightages for remaining index constituents.

Contact Information:

Issued by: Sushant Majhi, Chief Risk Officer, Indian Clearing Corporation Ltd

Impact Justification

Affects derivatives margin calculations for members with positions in Hindustan Unilever and related index constituents, requiring portfolio synchronization by specified deadlines