Description

Updated list of equity shares approved as non-cash component of liquid assets with applicable haircuts and quantity limits across trading segments.

Summary

NSE has issued a revised list of equity shares that qualify as non-cash component of liquid assets for margin requirements. The circular specifies 40 approved securities with VAR-based haircuts and quantity restrictions for members.

Key Points

  • VAR (Value at Risk) based haircut applies to all listed securities
  • Members can deposit each security subject to maximum 25% of total margins
  • Overall permitted quantities specified across all segments
  • Memberwise permitted quantity for CM Segment marked as N.A for all securities
  • List includes major blue-chip stocks across sectors including banking, FMCG, IT, energy, and telecom

Regulatory Changes

This circular provides updated permitted quantities for approved securities that can be pledged as collateral. The securities list includes:

  • Banking & Financial Services: AXISBANK, BAJAJFINSV, BAJFINANCE, HDFCBANK, HDFCLIFE, ICICIBANK, JIOFIN, KOTAKBANK, SBILIFE, SBIN, SHRIRAMFIN
  • Energy & Utilities: COALINDIA, NTPC, ONGC, POWERGRID, RELIANCE
  • Automotive: BAJAJ-AUTO, EICHERMOT, M&M, MARUTI
  • IT & Telecom: BHARTIARTL, HCLTECH, INFY
  • Industrials: ADANIENT, ADANIPORTS, BEL, GRASIM, HINDALCO, JSWSTEEL, LT
  • Consumer Goods: ASIANPAINT, HINDUNILVR, ITC, NESTLEIND
  • Healthcare: APOLLOHOSP, CIPLA, DRREDDY, MAXHEALTH
  • Others: ETERNAL, INDIGO

Compliance Requirements

  • Trading members must adhere to the 25% concentration limit per security
  • Members must ensure pledged quantities do not exceed the overall permitted quantities specified for each security
  • Securities must be valued with applicable VAR-based haircuts
  • CM Segment memberwise permitted quantities are currently not applicable (N.A)

Important Dates

Circular date: November 20, 2025 Effective date: Not explicitly specified in the provided content

Impact Assessment

This revision affects trading members’ collateral management strategies. The specified quantity limits ensure diversification of pledged securities and prevent concentration risk. The inclusion of 40 large-cap, liquid securities provides members with adequate options for meeting margin requirements while maintaining market stability. The VAR-based haircut methodology ensures dynamic risk adjustment based on market volatility.

Impact Justification

Routine update to approved securities list for margin purposes. Affects trading members' collateral management but represents standard operational maintenance rather than policy change.