Description

NSE updates the list of privately issued corporate bonds eligible for DVP-3 settlement on the institutional platform of the debt segment, including bonds from REC, HDFC Bank, IRFC, Tata Capital Housing Finance, and other major issuers.

Summary

NSE has issued a revised list of privately issued corporate bonds that are eligible for Delivery versus Payment Mode-3 (DVP-3) settlement on the institutional platform of the debt segment. The list includes bonds from major public sector and private sector entities including REC Limited, HDFC Bank, Indian Railway Finance Corporation (IRFC), Tata Capital Housing Finance, State Bank of India, ICICI Bank, Hindustan Petroleum Corporation, LIC Housing Finance, Power Finance Corporation, Indian Oil Corporation, and others. These bonds have various maturity dates ranging from 2026 to 2040 and are rated by multiple credit rating agencies including CARE, CRISIL, ICRA, IRRPL, and FITCH.

Key Points

  • Revised list of corporate bonds eligible for DVP-3 settlement on institutional debt platform
  • Includes bonds from major issuers: REC Limited, HDFC Bank, IRFC, Tata Capital Housing Finance, SBI, ICICI Bank, HPCL, LIC Housing Finance, PFC, IOC, and others
  • Bonds have maturity dates ranging from December 2026 to October 2040
  • All listed bonds are privately placed securities (Type 1 options)
  • Credit ratings provided by CARE, CRISIL, ICRA, IRRPL, and FITCH
  • Trading symbols use standard NSE debt nomenclature (IINGPT, IONGPT, IINGDB, IONGDB, IINGAT, IONGAT, IINGBB, IONGBB, IINGID, IONGID)

Regulatory Changes

This circular updates the list of eligible securities for DVP-3 settlement mechanism on the institutional platform. DVP-3 is a settlement method where securities are delivered without corresponding payment, commonly used for institutional transactions. The revision ensures that market participants have current information on which privately placed corporate bonds qualify for this settlement mode.

Compliance Requirements

  • Market participants and institutional investors should refer to this updated list for DVP-3 settlement eligibility
  • Only bonds specified in Annexure-I are eligible for DVP-3 settlement on the institutional platform
  • Trading members and clearing members must ensure transactions in these securities follow DVP-3 settlement procedures
  • Participants should verify the instrument symbols, maturity dates, and issuer details before executing trades

Important Dates

  • Circular Issue Date: November 14, 2025
  • Bond Maturity Dates: Range from December 30, 2026 (NBRD26) to February 14, 2040 (IRFCL40)
  • Various issue dates spanning from August 2017 to October 2025

Impact Assessment

This circular has medium impact on institutional debt market participants. The updated list provides clarity on eligible securities for DVP-3 settlement, which is crucial for institutional investors, custodians, and clearing members engaged in debt market operations. The inclusion of bonds from systemically important financial institutions and public sector undertakings ensures adequate liquidity and settlement options for large institutional transactions. Market participants relying on DVP-3 settlement mechanism need to update their systems and reference data with this revised list to ensure smooth settlement operations.

Impact Justification

Updates eligible securities list for institutional debt trading with DVP-3 settlement, affecting institutional investors and bond market participants but routine in nature