Description

NSE Clearing revises limits for acceptance of bank guarantees as collaterals, with higher limits for PCMs and custodians based on net worth categories.

Summary

NSE Clearing Limited has revised the member-wise and bank-wise limits for acceptance of bank guarantees as collaterals. The new limits are categorized based on member type and net worth, with Professional Clearing Members (PCMs), custodians, and Trading Cum Clearing Members having higher limits based on their net worth thresholds.

Key Points

  • Revision applies to Item 8.2.3.1 of consolidated circular 0122/2025 dated April 30, 2025
  • Limits differentiated based on member category and net worth (above/below Rs.500 crores)
  • Separate limits for clearing banks vs other banks
  • Members advised to check applicable limits before bank guarantee issuance

Regulatory Changes

Member-wise Bank-wise Limits (Rs in Crores):

  • PCM/Custodian/TM-CM with net worth ≥Rs.500 crores: Clearing Bank 3500, Other Banks 2800
  • PCM/Custodian/TM-CM with net worth <Rs.500 crores: Clearing Bank 1750, Other Banks 1400
  • Other categories: Clearing Bank 350, Other Banks 280

Member-wise Total Limits across all segments (Rs in Crores):

  • PCM/Custodian/TM-CM with net worth ≥Rs.500 crores: 14000
  • PCM/Custodian/TM-CM with net worth <Rs.500 crores: 7000
  • Other categories: 1700

Compliance Requirements

  • Members must verify their applicable limits before getting bank guarantees issued
  • Limits apply across all segments and schemes
  • Contact collaterals_ops@nsccl.co.in for queries
  • Use telephone support at 1800 266 0050 (IVR option 2)

Important Dates

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

Impact Assessment

This revision provides clearer tiered limits based on member net worth, potentially allowing larger clearing members with higher net worth to utilize more bank guarantee facilities. The differentiation between clearing banks and other banks also provides operational flexibility in collateral management.

Impact Justification

Operational change affecting clearing member limits for bank guarantees, directly impacts collateral management