Description

Updated list of 40 equity shares approved as non-cash component of liquid assets for margin requirements with VAR-based haircuts.

Summary

NSE has revised the list of approved equity shares that can form part of the non-cash component of liquid assets for margin purposes. The list contains 40 securities with VAR-based haircuts, where members can deposit each security subject to a maximum of 25% of total margins.

Key Points

  • 40 equity shares approved as non-cash component of liquid assets
  • VAR-based haircut applicable on all listed securities
  • Maximum 25% limit per security of total margins for each member
  • Overall permitted quantities specified for each security across all segments
  • No memberwise permitted quantity specified for CM segment (marked as N.A)

Regulatory Changes

  • Updated list replaces previous approved securities for margin purposes
  • Maintained VAR-based haircut methodology for risk management
  • Continued application of 25% concentration limit per security

Compliance Requirements

  • Trading members must adhere to 25% maximum limit per security
  • Securities to be valued with applicable VAR haircuts
  • Compliance with overall permitted quantities across all segments

Important Dates

  • Circular date: August 21, 2025
  • Implementation: Immediate upon circular issuance

Impact Assessment

  • Provides clarity on acceptable securities for margin requirements
  • Helps members plan their margin funding strategies
  • Ensures diversification through concentration limits
  • Maintains risk management through VAR-based haircuts

Impact Justification

Regular update to approved securities list affects margin requirements for trading members