Description

NSE Clearing revised limits for bank guarantees as collateral based on member categories and net worth, with higher limits for larger clearing members.

Summary

NSE Clearing Limited has revised the member-wise bank-wise limits and member-wise limits for acceptance of bank guarantees towards collaterals under the Securities Lending & Borrowing Scheme. The new limits are categorized based on member type and net worth, with higher limits for Professional Clearing Members, Custodians, and Trading Cum Clearing Members with net worth above Rs. 500 crores.

Key Points

  • Limits vary based on member category and net worth thresholds
  • Higher limits for clearing banks compared to other banks
  • Maximum limits range from Rs. 280 crores to Rs. 3,500 crores for bank-wise limits
  • Member-wise total limits range from Rs. 1,700 crores to Rs. 14,000 crores
  • Modifications to existing circular 037/2025 dated April 30, 2025

Regulatory Changes

Member-wise Bank-wise Limits:

  • PCM/Custodian/TM-CM with net worth ≥Rs. 500 crores: Rs. 2,800 crores (Other Banks), Rs. 3,500 crores (Clearing Bank)
  • PCM/Custodian/TM-CM with net worth <Rs. 500 crores: Rs. 1,400 crores (Other Banks), Rs. 1,750 crores (Clearing Bank)
  • Other categories: Rs. 280 crores (Other Banks), Rs. 350 crores (Clearing Bank)

Member-wise Total Limits:

  • PCM/Custodian/TM-CM with net worth ≥Rs. 500 crores: Rs. 14,000 crores
  • PCM/Custodian/TM-CM with net worth <Rs. 500 crores: Rs. 7,000 crores
  • Other categories: Rs. 1,700 crores

Compliance Requirements

  • Members must check their applicable limits before getting bank guarantees issued
  • Limits apply across all segments and schemes
  • Members should contact NSE Clearing for queries at collaterals_ops@nsccl.co.in or 1800 266 0050

Important Dates

  • Circular Date: August 13, 2025
  • Effective immediately upon circular issuance

Impact Assessment

This revision provides clarity on bank guarantee limits based on member categories and net worth, ensuring appropriate risk management while facilitating operations for different types of clearing members. Larger clearing members receive higher limits reflecting their capital strength and operational capacity.

Impact Justification

Affects operational limits for clearing members but does not impact broader market operations