Description

BSE announces changes in cross margin weightages following the demerger of Hindustan Unilever Limited (500696), with exclusion effective December 4, 2025 and revised weightages applicable from December 9, 2025.

Summary

Indian Clearing Corporation Ltd (ICCL) has issued adjustments to cross margin weightages following the demerger of Hindustan Unilever Limited (scrip code 500696). The company will be excluded from cross margin benefit computation on December 4, 2025. Revised weightages based on December 5, 2025 closing prices will be published and become effective from December 9, 2025. Members must synchronize their portfolios according to 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 remain unchanged during the transition
  • Revised weightages will be calculated based on HUL’s closing price on December 5, 2025
  • New weightages become effective from December 9, 2025 (beginning of day)
  • This circular references previous circular no. 20251127-59 dated November 27, 2025
  • Applies to derivatives segment cross margin benefits

Regulatory Changes

The demerger of Hindustan Unilever Limited triggers a recalibration of cross margin weightages across affected indices. The temporary exclusion on December 4, 2025 allows for price discovery post-demerger before final weightages are established. The staggered implementation (exclusion on Dec 4, weightage revision on Dec 9) provides a transition period for market participants to adjust their positions and risk calculations.

Compliance Requirements

  • All Members: Note the exclusion of Hindustan Unilever Limited from cross margin computation starting December 4, 2025
  • Portfolio Synchronization: Members must sync their portfolios as per revised weightages by December 8, 2025 (end of day)
  • Risk Management: Update internal risk systems to reflect the new cross margin weightages
  • Monitoring: Review positions in indices containing Hindustan Unilever to assess margin impact
  • Contact Points: For assistance, contact Mr. Sahil Shah (2272 8902) or Mr. Imran Ahmed (2272 8614) at risk.monitoring@icclindia.com

Important Dates

  • December 3, 2025: Circular issued
  • December 4, 2025: Hindustan Unilever excluded from cross margin benefit computation
  • December 5, 2025: Closing price used to calculate revised weightages; revised weightages published
  • December 8, 2025: Deadline for members to sync portfolios with revised weightages (end of day)
  • December 9, 2025: Revised weightages become effective (beginning of day)

Impact Assessment

Market Impact: High. The demerger of Hindustan Unilever, a major blue-chip stock, affects cross margin calculations across multiple indices including Sensex, BSE 100, and other benchmark indices. The temporary exclusion on December 4 followed by revised inclusion on December 9 creates a transition period that requires active portfolio management.

Operational Impact: High. Derivatives members with positions in indices containing Hindustan Unilever must recalculate margin requirements and potentially adjust positions. The requirement to synchronize portfolios by December 8 necessitates coordination between trading, risk, and operations teams.

Risk Management Impact: The change in cross margin weightages may alter the margin benefit available to members holding correlated positions across cash and derivatives segments. Members should assess whether current hedging strategies remain optimal under the new weightage structure and ensure adequate margin funds are available to cover any increased requirements during the transition period.

Impact Justification

Affects cross margin computation for all derivatives members with positions in indices containing Hindustan Unilever; requires portfolio synchronization by December 8, 2025 to avoid margin calculation discrepancies