Description
Updated list of 40 equity shares eligible as non-cash component of liquid assets with VAR-based haircuts and quantity limits.
Summary
NSE has issued a revised list of approved equity securities that can form part of the non-cash component of liquid assets. The list includes 40 major equity shares with specified quantity limits and VAR-based haircut applicability.
Key Points
- 40 equity securities approved for non-cash liquid asset component
- VAR (Value at Risk) based haircuts applicable to all listed securities
- Maximum 25% limit per security of total margins for member deposits
- Overall permitted quantities specified for each security across all segments
- CD segment memberwise permitted quantities marked as N.A for all securities
Regulatory Changes
- Updated approved securities list replacing previous version
- Maintained VAR-based haircut methodology
- Continued 25% concentration limit per security for margin deposits
Compliance Requirements
- Trading members must adhere to maximum 25% exposure limit per approved security
- Members can only deposit securities from the approved list as non-cash margin
- Overall quantity limits must be respected across all trading segments
- VAR-based haircuts will be applied to all approved securities
Important Dates
- Circular effective from date of issuance (August 21, 2025)
Impact Assessment
- Provides clarity on eligible securities for margin purposes
- Maintains risk management through quantity limits and VAR haircuts
- Ensures diversification through 25% concentration limits
- Covers major blue-chip stocks across sectors including banking, IT, pharma, auto, and energy
- No impact on CD segment as memberwise quantities remain N.A
Impact Justification
Updates approved securities list affecting margin calculations and liquid asset composition for trading members