Description
NSE changes Securities Lending & Borrowing reverse leg settlement day from first Thursday to first Tuesday of the month, effective October 2025.
Summary
NSE Clearing Limited has announced a change in the Securities Lending & Borrowing (SLB) reverse leg settlement day from “First Thursday of the month” to “First Tuesday of the month,” effective for contracts expiring in and after October 2025.
Key Points
- SLB reverse leg settlement day changed from first Thursday to first Tuesday of each month
- Change effective for contracts expiring in and after October 2025
- October 2025 revised expiry day will be 07th October 2025
- EOD file updates for existing contracts to be communicated separately
- Settlement calendar changes to be intimated separately
Regulatory Changes
Modification of SLB reverse leg settlement schedule as per NSE Clearing Limited’s consolidated circular framework, updating the previous circular NCL/CMPT/67763 dated April 30, 2025.
Compliance Requirements
- All SLB participants and custodians must adjust their settlement processes and systems
- Update internal calendars and settlement schedules for the new timeline
- Prepare for transition from existing Thursday settlements to Tuesday settlements
Important Dates
- Effective Date: October 2025 contracts and thereafter
- First New Expiry Date: 07th October 2025 (First Tuesday)
- EOD File Update: To be communicated separately
- Settlement Calendar: Detailed schedule to be provided separately
Impact Assessment
This change will require operational adjustments for all SLB participants and custodians, affecting settlement timing, cash flow planning, and system configurations. The two-day earlier settlement (Tuesday vs Thursday) may impact liquidity management and operational workflows for market participants engaged in securities lending and borrowing activities.
Impact Justification
Operational change affecting SLB participants' settlement schedules and processes