Description

NSE Clearing adds The South Indian Bank Ltd. to the list of approved banks for issuance of Fixed Deposits and Bank Guarantee receipts towards security and margin deposits for Commodity Derivatives Segment.

Summary

NSE Clearing Limited has revised its list of approved banks for the issuance of Fixed Deposit Receipts (FDRs) and Bank Guarantees (BGs) towards security deposit and margin deposit requirements in the Commodity Derivatives Segment. The South Indian Bank Ltd. has been added to the existing approved banks list with E-FDR facility available but E-BG facility not available.

Key Points

  • The South Indian Bank Ltd. added to approved banks list
  • Bank approved for E-FDR issuance: Yes
  • Bank approved for E-BG issuance: No
  • Applicable to Commodity Derivatives Segment
  • Valid for both security deposit and margin deposit purposes
  • Supersedes previous circular no. 0296/2025 dated September 22, 2025

Regulatory Changes

This circular expands the list of approved banks that members and custodians can use for depositing Fixed Deposits and Bank Guarantees as collateral in the Commodity Derivatives Segment. The addition provides members with more banking options for meeting their collateral requirements.

Compliance Requirements

  • Members and custodians of NSE Clearing’s Commodity Derivatives Segment should take note of the updated approved banks list
  • Members can now accept FDRs from The South Indian Bank Ltd. towards security and margin deposits
  • E-BG facility is not available from this bank, so members must use alternative methods or banks for Bank Guarantee requirements

Important Dates

  • Circular Date: October 07, 2025
  • Effective Date: Immediate (upon circular issuance)
  • Reference Circular: 0296/2025 dated September 22, 2025

Impact Assessment

Operational Impact: Low - This is an administrative update that provides additional flexibility to market participants. Members now have one more banking option for FDR-based collateral deposits.

Market Impact: Minimal - No impact on trading operations, settlement processes, or existing positions. The change simply expands the choice of approved banks for collateral purposes.

Member Action Required: Members should update their internal approved banks list and inform their operations teams. No immediate action is mandatory unless members wish to utilize this new banking option.

Contact Information: For queries, members can contact NSE Clearing at collaterals_ops@nsccl.co.in or call 1800 266 0050 (IVR Option 2).

Impact Justification

Administrative update adding one bank to approved list for FDRs/BGs. No immediate action required from most market participants. Limited operational impact.