Description

NSE Clearing revises member-wise and bank-wise limits for acceptance of bank guarantees as collaterals, with different limits based on member category and net worth.

Summary

NSE Clearing Limited has revised the member-wise and bank-wise limits for acceptance of bank guarantees towards collaterals. The new limits are categorized based on member type and net worth, with Professional Clearing Members (PCM), Custodians, and Trading Cum Clearing Members having different limits based on whether their net worth is above or below Rs. 500 crores.

Key Points

  • Member-wise bank-wise limits vary based on member category and net worth
  • Higher limits for members with net worth >= Rs. 500 crores
  • Different limits for clearing banks vs other banks
  • Maximum aggregate limits specified across all segments/schemes
  • Members must verify applicable limits before issuing bank guarantees

Regulatory Changes

Member-wise Bank-wise Limits:

  • PCM/Custodian/TM-CM with net worth >= Rs. 500 crores: Rs. 3,500 crores (Clearing Bank), Rs. 2,800 crores (Other Banks)
  • PCM/Custodian/TM-CM with 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 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 revised limits based on their category and net worth

Important Dates

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

Impact Assessment

The revision provides clearer structure for bank guarantee limits based on member financial strength. Higher net worth members receive significantly higher limits, potentially improving their operational flexibility. The differentiation between clearing banks and other banks may influence members’ banking relationships for collateral purposes.

Impact Justification

Affects operational limits for clearing members but doesn't impact trading directly