Description
NSE Clearing Limited revises bank guarantee limits for different member categories with increased limits for PCM/Custodian/TM-CM members based on net worth.
Summary
NSE Clearing Limited has revised the member-wise bank-wise limits and member-wise limits for acceptance of Bank Guarantee towards collaterals in the commodity derivatives segment. The revision categorizes members based on net worth and sets different limits accordingly.
Key Points
- Modification to Item 6.5.C of consolidated circular no. 0123/2025 dated April 30, 2025
- Three categories of members with different limit structures based on net worth
- Higher limits for members with net worth ≥Rs.500 crores
- Separate limits for clearing banks vs other banks
- Limits apply across all segments/schemes
Regulatory Changes
Member-wise Bank-wise Limits (Rs in Crores):
- PCM/Custodian/TM-CM with net worth ≥Rs.500 crores: Other Banks Rs.2800, Clearing Bank Rs.3500
- PCM/Custodian/TM-CM with net worth <Rs.500 crores: Other Banks Rs.1400, Clearing Bank Rs.1750
- Other categories: Other Banks Rs.280, Clearing Bank Rs.350
Member-wise Limits (Rs in Crores):
- PCM/Custodian/TM-CM with net worth ≥Rs.500 crores: Rs.14000
- PCM/Custodian/TM-CM with net worth <Rs.500 crores: Rs.7000
- Other categories: Rs.1700
Compliance Requirements
- Members must check their applicable limit before getting bank guarantees issued
- Limits are applicable across all segments/schemes
- Members need to ensure compliance with their category-specific limits
Important Dates
- Circular Date: August 13, 2025
- Effective immediately upon issuance
Impact Assessment
This revision provides higher collateral acceptance limits for larger clearing members, potentially improving their operational flexibility. The tiered structure based on net worth ensures proportional risk management while accommodating different member sizes in the commodity derivatives segment.
Impact Justification
Operational changes affecting clearing member limits but not market-wide impact