Description

Updated list of Sovereign Gold Bonds (SGBs) approved as collateral to form part of cash component of liquid assets, with applicable 10% haircut across all listed bonds.

Summary

NSE has issued a revised list of approved securities that can be accepted as collateral, specifically focusing on Sovereign Gold Bonds (SGBs), G-Sec, and T-Bills that form part of the cash component of liquid assets. The circular confirms that all SGB/G-Sec/T-Bills issued by RBI during the month shall be accepted from the date of issue. The list contains 42 Sovereign Gold Bonds with maturity dates ranging from 2026 to 2031, all subject to a uniform 10% haircut.

Key Points

  • List includes 42 Sovereign Gold Bonds issued between 2017-2023
  • All SGBs carry a uniform 10% haircut (0.1 applicable haircut)
  • Bonds have maturity dates spanning from 2026 to 2031
  • All bonds carry a 2.50% coupon rate
  • SGBs issued by RBI during any month are automatically accepted from date of issue
  • List covers various series including multiple tranches from different fiscal years

Regulatory Changes

No regulatory changes introduced. This is a routine update of the approved securities list maintaining existing framework where:

  • Sovereign Gold Bonds, G-Sec, and T-Bills are eligible as collateral
  • They form part of cash component of liquid assets
  • New issues by RBI are automatically included from issuance date

Compliance Requirements

  • Trading members and clearing members must refer to this updated list when pledging collateral
  • Only SGBs listed in the annexure with specified ISINs are eligible for collateral purposes
  • 10% haircut must be applied uniformly across all listed Sovereign Gold Bonds
  • Market participants should note that newly issued RBI bonds are automatically eligible without requiring separate notification

Important Dates

  • Circular Date: November 20, 2025
  • Effective Date: Immediate (from date of circular)
  • SGB Maturity Range: 2026-2031 across different bonds

Impact Assessment

Market Impact: Minimal. This is an administrative update that maintains continuity of existing collateral framework.

Operational Impact: Low. Trading and clearing members can continue using approved SGBs as collateral with standard 10% haircut. The list provides clarity on eligible ISINs and symbols.

Liquidity Impact: Neutral. No changes to haircut rates or eligibility criteria that would affect collateral values or margin requirements.

Member Impact: Informational only. Members should update their internal systems with the current list of approved securities and corresponding symbols for accurate collateral management.

Impact Justification

Routine update of approved collateral list for operational purposes with no changes to haircut rates or eligibility criteria