Description

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

Summary

NSE Clearing Limited has added The South Indian Bank Ltd. to the approved list of banks authorized to issue Fixed Deposit Receipts (FDRs) and Bank Guarantees (BGs) for security deposit and margin deposit purposes in the Debt Segment. This addition expands the options available to members and custodians for submitting collateral.

Key Points

  • The South Indian Bank Ltd. is now approved for E-FDR issuance (E-BG not available)
  • This is an addition to the existing approved banks list published on September 22, 2025 (circular 017/2025)
  • Members and custodians can now use this bank for depositing Fixed Deposits towards security and margin requirements
  • Bank Guarantee facility is not available from this bank (E-BG: No)

Regulatory Changes

No regulatory policy changes. This is an expansion of the approved banks list for collateral management purposes in the Debt Segment.

Compliance Requirements

  • Members and custodians should note the addition of The South Indian Bank Ltd. to their approved banks list
  • E-FDRs from The South Indian Bank Ltd. can now be accepted for security deposit and margin deposit requirements
  • E-BG facility remains unavailable from this bank

Important Dates

  • Circular Date: October 07, 2025
  • Effective Date: Immediate (upon circular issuance)
  • Reference Circular: 017/2025 dated September 22, 2025

Impact Assessment

Market Impact: Minimal. This is an administrative enhancement that provides members with additional banking options for collateral submission.

Operational Impact: Low. Members and custodians gain one additional approved bank for E-FDR issuance, providing slightly more flexibility in collateral management for Debt Segment operations.

Contact: For queries, members can contact 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 and BGs. Does not affect trading operations or impose new compliance requirements on most participants.