Description

NSE Clearing Limited revises bank guarantee limits for different member categories in currency derivatives segment, effective August 13, 2025.

Summary

NSE Clearing Limited has revised the member-wise and bank-wise limits for acceptance of Bank Guarantee towards collaterals in the Currency Derivatives Segment. The circular modifies Item 7.4.3.1 of consolidated circular 043/2025 and establishes differentiated limits based on member categories and net worth.

Key Points

  • Limits are categorized based on member type and net worth thresholds
  • Professional Clearing Members and Custodians with net worth ≥Rs.500 crores get highest limits
  • Separate limits apply for clearing banks vs other banks
  • Total member-wise limits range from Rs.1,700 crores to Rs.14,000 crores
  • Bank-wise limits range from Rs.280 crores to Rs.3,500 crores

Regulatory Changes

Member-wise Bank-wise Limits:

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

Member-wise Total Limits:

  • PCM/Custodian/TM-CM (net worth ≥Rs.500 crores): Rs.14,000 crores
  • PCM/Custodian/TM-CM (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 collaterals_ops@nsccl.co.in for queries
  • Telephone support available at 1800 266 0050 (IVR option 2)

Important Dates

  • Circular Date: August 13, 2025
  • Effective Date: August 13, 2025 (immediate effect)
  • Modifies: Consolidated circular 043/2025 dated April 29, 2025

Impact Assessment

This revision provides clearer risk-based differentiation of collateral limits, potentially improving capital efficiency for larger clearing members while maintaining appropriate risk controls. The tiered structure based on net worth ensures that limits are commensurate with member financial capacity, enhancing overall market stability in currency derivatives trading.

Impact Justification

Updates collateral limits for clearing members which affects operational capacity but doesn't impact individual stocks