Description
NSE Clearing updates the list of ETFs eligible for cross margining benefits, effective October 29, 2025, covering 60 eligible ETF schemes across various indices.
Summary
NSE Clearing Limited has issued a revised list of Exchange Traded Funds (ETFs) eligible for cross margining benefits, effective October 29, 2025. The circular updates the previous list from September 29, 2025 (circular 0308/2025), and includes 60 ETF schemes across various indices including Nifty 50, Bank Nifty, sectoral indices, and mid-cap indices, with specified minimum quantity requirements for each ETF.
Key Points
- Revised list of 60 cross margin eligible ETFs effective from October 29, 2025
- Includes ETFs from major fund houses: Nippon India, SBI, ICICI Prudential, Kotak Mahindra, HDFC, Mirae Asset, UTI, Axis, DSP, LIC, Aditya Birla Sun Life, Tata, and Motilal Oswal
- ETFs cover diverse indices: Nifty 50, Bank Nifty, IT, PSU Banks, Junior Bees, Midcap 150, Next 50, sectoral indices (Auto, Pharma, Infrastructure, Healthcare, Technology, BFSI)
- Each ETF has specified minimum quantity requirements ranging from 500 to 75,000 units
- Supersedes circular 0308/2025 dated September 29, 2025
- Popular ETFs included: NIFTYBEES, BANKBEES, ITBEES, JUNIORBEES, SETFNIF50, CPSEETF
Regulatory Changes
This circular revises the list of ETFs eligible for cross margining benefits. Cross margining allows offset of margin requirements between correlated positions, providing capital efficiency benefits to members holding positions in these ETFs. The updated list may include additions or removals compared to the previous list from September 29, 2025.
Compliance Requirements
- Members must trade ETFs in the specified minimum quantities (or multiples thereof) to avail cross margining benefits
- Minimum quantity requirements vary by ETF, ranging from 500 units (INFRABEES) to 75,000 units (BSLNIFTY, BFSI)
- Members should update their trading and risk management systems to reflect the revised list effective October 29, 2025
- For queries, members can contact NSE Clearing at 18002660050 (IVR Option - 2) or email cm_clearing_ops@nsccl.co.in
Important Dates
- Circular Date: October 27, 2025
- Effective Date: October 29, 2025
- Previous Circular: September 29, 2025 (Circular 0308/2025, Download Reference No: NCL/CMPT/70495)
Impact Assessment
Market Impact: Medium - affects margin requirements for ETF traders across capital market segment
Operational Impact: Trading members and clearing members holding positions in these ETFs will benefit from reduced margin requirements through cross margining. The revision may result in:
- Enhanced capital efficiency for members trading eligible ETFs
- Potential changes in margin utilization for members if ETFs were added or removed from the eligible list
- Requirement for members to adjust position sizes to meet minimum quantity requirements
Beneficiaries: Institutional investors, proprietary traders, and market makers dealing in multiple ETF positions across correlated indices will benefit from margin offset benefits, improving capital deployment efficiency.
Impact Justification
Updates cross-margin eligible ETF list affecting margin requirements for ETF traders. Medium impact as it adds/removes ETFs from cross-margining benefits, affecting capital efficiency for market participants.