Description

NSE Clearing adds The South Indian Bank Ltd. to the approved list of banks for issuing Fixed Deposit Receipts and Bank Guarantees for Currency Derivatives Segment.

Summary

NSE Clearing Limited has added The South Indian Bank Ltd. to its list of approved banks for issuing Fixed Deposit Receipts (FDRs) and Bank Guarantees (BGs) towards security deposit and margin deposit requirements in the Currency Derivatives Segment. This addition expands the options available to members and custodians for meeting collateral requirements.

Key Points

  • The South Indian Bank Ltd. is now approved for issuing E-FDRs (Electronic Fixed Deposit Receipts)
  • The bank is not approved for E-BG (Electronic Bank Guarantee) issuance at this time
  • This is an addition to the existing approved banks list published on September 22, 2025 (Circular 033/2025)
  • The approval applies to Currency Derivatives Segment operations
  • Members, custodians, and PCMs (Professional Clearing Members) are advised to take note

Regulatory Changes

No regulatory framework changes. This is an expansion of the approved banks list for operational purposes.

Compliance Requirements

No new compliance requirements. Members may choose to use The South Indian Bank Ltd. for E-FDR issuance for margin and security deposits in the Currency Derivatives Segment.

Important Dates

  • Circular Date: October 07, 2025
  • Effective Date: Immediate (upon circular issuance)
  • Previous Related Circular: September 22, 2025 (Circular 033/2025, Download Ref No: NCL/CD/70349)

Impact Assessment

Operational Impact: Low to positive. Members gain an additional banking option for collateral management in Currency Derivatives trading, potentially improving flexibility in deposit placement and margin management.

Market Impact: Minimal. This is an administrative enhancement that does not affect trading mechanisms, margin requirements, or market structure.

Member Impact: Positive for members who have existing relationships with The South Indian Bank Ltd., as they can now use this bank for E-FDR issuance for their Currency Derivatives operations.

Impact Justification

Administrative update adding one bank to approved list for collateral purposes in Currency Derivatives segment. Does not affect trading rules or impose new compliance obligations on members.