Description

BSE publishes standardized file format listing eligible securities accepted as collateral across all segments for December 2025, including permitted quantities and applicable haircuts.

Summary

BSE has issued a standardized file format listing eligible securities that can be pledged as collateral across all trading and clearing segments for the month of December 2025. The circular provides comprehensive details including ISINs, company names, overall permitted quantities, and applicable haircuts for non-cash collateral securities.

Key Points

  • File format standardization for eligible collateral securities effective for December 2025
  • List includes 19+ major equity securities accepted as collateral
  • All listed securities are non-cash collateral type
  • Haircut formula: Higher of 9% or VaR Margin based on 6σ (six sigma)
  • Overall permitted quantities specified for each security across all segments
  • Includes major companies like Bajaj Finance, Bharat Electronics, BEML, Bata India, BASF India, and others

Regulatory Changes

No new regulatory changes introduced. This circular provides standardized reference data in a consistent file format for operational use by clearing members and participants.

Compliance Requirements

  • Clearing members must use the standardized file format for collateral management
  • Members must adhere to specified permitted quantities for each security
  • Mandatory application of prescribed haircuts (minimum 9% or VaR-based 6σ, whichever is higher)
  • Collateral pledging must respect overall permitted quantity limits across all segments

Important Dates

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

Impact Assessment

Operational Impact: Medium - Provides essential reference data for collateral management and risk mitigation across BSE segments. Clearing members and trading participants need to update their systems with the standardized format and current permitted quantities.

Market Impact: Low - Does not affect trading operations directly. This is an informational circular for back-office and risk management functions.

Risk Management: The standardized haircut methodology (higher of 9% or VaR-based 6σ) ensures consistent risk coverage across different securities while accounting for volatility differences. The specified permitted quantities help manage concentration risk in the collateral pool.

Impact Justification

Operational circular providing standardized collateral reference data for December 2025. Important for members managing collateral but does not introduce new policy changes or impact trading activities directly.