Description

NSE Clearing updates the list of ETFs eligible for cross margining, effective October 29, 2025, covering 60+ ETFs across Nifty, Bank, IT, PSU Bank, Midcap and sectoral indices.

Summary

NSE Clearing Limited has issued a revised list of Exchange Traded Funds (ETFs) eligible for cross margining benefits effective October 29, 2025. This circular supersedes the previous list issued on September 29, 2025 (circular no. 0127/2025). The updated list includes 60+ ETFs across various indices including Nifty 50, Bank Nifty, sectoral indices, and thematic funds, with specified minimum quantity requirements for each ETF.

Key Points

  • Total of 60+ ETFs now eligible for cross margining benefits
  • Includes major index ETFs: NIFTYBEES, BANKBEES, ITBEES, SETFNIF50, JUNIORBEES
  • Covers sectoral ETFs: PHARMABEES, AUTOBEES, INFRABEES, CPSEETF
  • Midcap ETFs included: MID150BEES, MIDCAPETF, MIDCAP, HDFCMID150
  • Minimum quantity requirements range from 500 to 75,000 units depending on the ETF
  • Fund houses represented: Nippon India, SBI, ICICI Prudential, Kotak, HDFC, Mirae Asset, UTI, Axis, DSP, LIC, Aditya Birla Sun Life, Motilal Oswal, Tata
  • Previous circular dated September 29, 2025 is superseded by this update

Regulatory Changes

This is a revision to the existing cross margining framework for ETFs. Cross margining allows members to offset their ETF positions in the cash segment against F&O positions, resulting in reduced margin requirements. The regulatory framework remains unchanged; only the list of eligible securities has been updated.

Compliance Requirements

  • Members must hold the specified minimum quantities (or multiples thereof) to avail cross margin benefits
  • Applicable to all members trading in Futures & Options segment
  • Members should update their risk management systems to reflect the revised eligible ETF list
  • Minimum quantity requirements must be strictly adhered to for margin benefit calculation

Important Dates

  • Circular Issue Date: October 27, 2025
  • Effective Date: October 29, 2025
  • Previous Circular Date: September 29, 2025 (Circular no. 0127/2025, Reference: NCL/CMPT/70496)

Impact Assessment

Operational Impact: Members with positions in the listed ETFs and corresponding F&O positions can optimize their margin utilization starting October 29, 2025. The revised list provides clarity on eligible securities and standardizes margin benefit calculations across the exchange.

Market Impact: Low to medium impact. This is primarily an operational benefit for members already active in both cash and derivatives segments. The inclusion of 60+ ETFs provides broader opportunities for margin optimization across different market segments and investment themes.

Member Benefits: Improved capital efficiency through reduced margin requirements when holding offsetting positions. The diverse list covering Nifty indices, sectoral themes, and market cap segments provides flexibility for different trading strategies.

Contact Information: For queries, members can reach NSE Clearing at 18002660050 (IVR Option - 2) or email fo_clearing_ops@nsccl.co.in

Impact Justification

Operational update affecting margin calculations for ETF positions. Medium impact as it affects members with ETF and F&O positions seeking cross-margin benefits. No trading restrictions or compliance deadlines.