Description

BSE circular standardizing the file format for eligible collateral securities across all segments, including details on permitted quantities, haircuts, and applicable parameters for December 2025.

Summary

BSE has issued a circular standardizing the file format for eligible collateral securities. The circular provides a comprehensive list of non-cash securities that can be used as collateral for the month of December 2025, including details on ISIN, permitted quantities across all segments, memberwise permitted quantities, and applicable haircuts. The haircut is specified as “Higher of 9% or VaR Margin based on 6σ” for all listed securities.

Key Points

  • File format standardization for eligible collateral securities across all BSE segments
  • Applicable for the month of December 2025 (2025-12-01)
  • All listed securities are categorized as “Non Cash” collateral type
  • Uniform haircut methodology applied: Higher of 9% or VaR Margin based on 6 sigma
  • Includes 19 major securities from diverse sectors (manufacturing, finance, utilities, electronics)
  • Overall permitted quantity specified for each security across all segments
  • No issue date or expiry date specified for securities collateral

Regulatory Changes

This circular standardizes the data format for reporting and managing eligible collateral. The standardization ensures consistency in:

  • Collateral classification (Cash/Non Cash)
  • Security identification (Scrip code, ISIN, Company name)
  • Quantity limits (Overall and memberwise permitted quantities)
  • Risk parameters (Haircut percentages and calculation methodology)
  • Temporal applicability (Applicable month field)

The format includes provisions for scheme type, issue/expiry dates, and additional filler columns for future expansion.

Compliance Requirements

  • Trading and clearing members must use the standardized file format for submitting eligible collateral information
  • Members must adhere to the specified overall permitted quantities across all segments
  • Memberwise permitted quantity limits must be observed for each segment separately
  • Haircut calculation must follow the prescribed methodology: Higher of 9% or VaR Margin based on 6σ
  • Collateral reporting must include all mandatory fields: Sr. No., Cash/Non Cash classification, Collateral Type, Applicable Month, Scrip, ISIN, Company Name, quantities, and haircut details

Important Dates

  • Applicable Month: December 2025 (2025-12-01)
  • Circular Issue Date: December 17, 2025

Impact Assessment

Market Impact: Medium - This standardization affects all trading and clearing members who utilize securities as collateral for their trading positions. The uniform format will improve operational efficiency and reduce errors in collateral management.

Operational Impact: The standardized format will streamline collateral processing, enhance risk management capabilities, and facilitate automated systems integration. Members will need to ensure their systems are aligned with the specified format.

Risk Management Impact: The uniform haircut methodology (Higher of 9% or VaR Margin based on 6σ) ensures consistent risk coverage across all eligible securities while maintaining adequate margin buffers.

Securities Covered: The annexure lists 19 securities including major companies like Bajaj Finance (₹562.73 crore permitted quantity), Bharat Electronics (₹714.37 crore), and ABB India (₹105.95 crore), representing significant collateral value across multiple sectors including financial services, manufacturing, utilities, and electronics.

Impact Justification

Operational circular affecting collateral management and margin requirements for trading members across all segments, but does not introduce new policy changes, only standardizes existing file format.