Description

NSE Clearing 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 from June 25, 2025, and includes 50 ETFs with their corresponding minimum quantity requirements.

Key Points

  • Revised list of cross margin eligible ETFs takes effect from August 01, 2025
  • Total of 50 ETFs included in the updated list
  • Each ETF has specific minimum quantity requirements ranging from 500 to 65,000 units
  • Includes major ETFs like NIFTYBEES, BANKBEES, ITBEES, and various sector-specific funds
  • Covers ETFs from multiple fund houses including Nippon India, SBI, ICICI Prudential, HDFC, Kotak Mahindra, and others

Regulatory Changes

This circular updates the previous cross margin eligible ETF list issued via circular 075/2025 dated June 25, 2025. The changes allow for risk offset between cash and derivatives positions in the specified ETFs.

Compliance Requirements

  • Trading members must ensure compliance with minimum quantity requirements for each eligible ETF
  • Cross margining benefits will only apply to positions meeting the specified minimum quantities
  • Members should update their systems to reflect the revised list effective August 01, 2025

Important Dates

  • Effective Date: August 01, 2025
  • Circular Date: July 30, 2025
  • Previous Circular: June 25, 2025 (circular 075/2025)

Impact Assessment

The revised list provides enhanced risk management and capital efficiency for traders dealing in ETFs and their underlying derivatives. Members can benefit from cross margining across 50 different ETFs, potentially reducing overall margin requirements and improving capital utilization. The inclusion of diverse sector ETFs (banking, IT, pharma, auto, infrastructure) provides broader coverage for cross margining benefits.

Impact Justification

Affects ETF trading and margin requirements for derivatives traders using cross-margining