Description

NSE Clearing Limited revises limits for bank guarantee acceptance based on member categories and net worth thresholds.

Summary

NSE Clearing Limited has revised the member-wise bank-wise limits and member-wise limits for acceptance of bank guarantees towards collaterals. The revision is based on member categories with specific net worth thresholds and applies across all segments and schemes.

Key Points

  • Member-wise bank-wise limits categorized by net worth (≥Rs.500 crores vs <Rs.500 crores)
  • Professional Clearing Members (PCM), Custodians, and Trading Cum Clearing Members (TM-CM) receive higher limits
  • Separate limits for clearing banks vs other banks
  • Member-wise limits range from Rs.1,700 crores to Rs.14,000 crores based on category

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 banks)
  • PCM/Custodian/TM-CM with net worth <Rs.500 crores: Rs.1,400 crores (other banks), Rs.1,750 crores (clearing banks)
  • Other categories: Rs.280 crores (other banks), Rs.350 crores (clearing banks)

Member-wise 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 must ensure compliance with their specific category limits

Important Dates

  • Circular Date: August 13, 2025
  • Effective immediately upon issuance
  • Modifies previous circular 0119/2025 dated April 29, 2025

Impact Assessment

The revised limits provide differentiated treatment based on member net worth, potentially increasing collateral capacity for larger clearing members while maintaining risk controls. This could enhance capital efficiency for well-capitalized clearing members and custodians.

Impact Justification

Affects collateral limits for clearing members based on net worth categories