Description

Updated list of Sovereign Gold Bonds (SGBs), G-Sec, and T-Bills approved as collateral for liquid assets, with applicable haircuts of 10% for all listed SGBs.

Summary

NSE has issued a revised list of approved securities eligible as collateral for liquid assets, specifically covering Sovereign Gold Bonds (SGBs), Government Securities (G-Sec), and Treasury Bills (T-Bills). The circular confirms that all SGB/G-Sec/T-Bill instruments issued by RBI during the month shall be accepted from their date of issue. A total of 43 Sovereign Gold Bonds are listed with their ISIN codes, security descriptions, symbols, and applicable haircuts.

Key Points

  • All Sovereign Gold Bonds, G-Sec, and T-Bills issued by RBI are accepted as collateral from date of issue
  • Uniform haircut of 10% (0.1) applies to all listed Sovereign Gold Bonds
  • 43 different SGB series are approved, with maturity dates ranging from 2025 to 2032
  • All SGBs carry a 2.50% coupon rate
  • Securities are identified by ISIN codes and trading symbols for clear identification

Regulatory Changes

This circular provides an updated reference list of approved collateral securities. The inclusion of SGBs from various series (2017-2023 issuances) ensures market participants have clarity on which specific instruments qualify as acceptable collateral for margin and liquid asset requirements.

Compliance Requirements

  • Trading members and clearing members must use only the securities listed in this circular as approved collateral
  • Apply the specified 10% haircut when calculating collateral value for all Sovereign Gold Bonds
  • Ensure proper identification of securities using the provided ISIN codes and symbols
  • Accept newly issued SGB/G-Sec/T-Bills from RBI starting from their issue date

Important Dates

  • SGB maturity dates range from 2025 to 2032 across different series
  • Earliest maturing SGBs: November-December 2025 series
  • Latest maturing SGBs: February 2032 series
  • New issuances by RBI to be accepted from date of issue

Impact Assessment

This circular impacts brokers, trading members, and institutional participants who utilize government securities as collateral for trading activities. The standardized 10% haircut across all SGBs provides consistency in collateral valuation. Market participants can continue using the wide range of SGB series (spanning 7 years of issuances) as eligible collateral, maintaining flexibility in collateral management while ensuring adequate risk margins through the haircut mechanism.

Impact Justification

Updates the list of approved collateral securities affecting market participants who use SGBs, G-Sec, and T-Bills for margin purposes. Medium impact as it affects operational collateral management but does not introduce new restrictions or major policy changes.