Description
NSE updates the list of ETFs eligible for cross margining with effect from August 01, 2025.
Summary
NSE Clearing Limited has issued a revised list of Exchange Traded Funds (ETFs) eligible for cross margining, effective August 01, 2025. The circular updates the previous list dated June 25, 2025, and specifies minimum quantity requirements for each eligible ETF.
Key Points
- 65 ETFs are eligible for cross margining effective August 01, 2025
- Each ETF has specified minimum quantity requirements ranging from 500 to 65,000 units
- List includes major ETFs covering various indices like Nifty 50, Bank Nifty, IT, Pharma, and sectoral funds
- Popular ETFs include NIFTYBEES (7,500 min qty), BANKBEES (3,000 min qty), and ITBEES (10,000 min qty)
- Cross margining allows offset of positions across different market segments
Regulatory Changes
The circular updates the eligible ETF list for cross margining purposes, replacing the previous list issued on June 25, 2025. This is part of NSE’s ongoing risk management framework for derivatives clearing.
Compliance Requirements
- All clearing members must adhere to the revised list effective August 01, 2025
- Minimum quantity requirements must be maintained for cross margin benefits
- Members must ensure compliance with specified minimum quantities for each ETF
Important Dates
- Effective Date: August 01, 2025
- Circular Date: July 30, 2025
- Previous Circular: June 25, 2025 (Reference: 0190/2025)
Impact Assessment
The updated list provides clearing members with expanded options for cross margining, potentially improving capital efficiency. The inclusion of 65 ETFs covering diverse sectors and indices allows for better risk management and margin optimization across equity and derivative positions. Members trading in these ETFs can benefit from reduced margin requirements when holding offsetting positions.
Impact Justification
Updates operational requirements for ETF cross margining affecting clearing members