Description

Updated list of 40 equity shares eligible as non-cash component of liquid assets with applicable haircuts and quantity limits for SLB segment collateral.

Summary

NSE has issued a revised list of 40 equity shares that qualify as non-cash component of liquid assets for margin requirements. These securities are subject to VAR-based haircuts and specific quantity limits. Members can deposit each security subject to a maximum of 25% of total margins, with overall permitted quantities specified for each security across all segments.

Key Points

  • Total 40 equity shares approved for non-cash liquid asset component
  • Applicable haircut is based on VAR (Value at Risk)
  • Maximum 25% of total margins can be in any single security
  • Overall permitted quantities specified across all segments
  • Securities currently not available for SLB segment (marked as N.A)
  • Includes major blue-chip stocks across sectors including banking, energy, IT, pharma, and automobiles

Regulatory Changes

This circular provides an updated list of approved securities eligible for use as collateral. The list includes prominent stocks such as:

  • Financial sector: HDFCBANK, ICICIBANK, AXISBANK, KOTAKBANK, SBIN, BAJFINANCE
  • Energy sector: RELIANCE, ONGC, COALINDIA, NTPC, POWERGRID
  • IT sector: INFY, HCLTECH, TCS
  • Automobile sector: MARUTI, M&M, BAJAJ-AUTO, EICHERMOT
  • FMCG sector: ITC, HINDUNILVR, NESTLEIND, ASIANPAINT
  • Other major stocks: BHARTIARTL, ADANIPORTS, BEL, LT, JIOFIN

Compliance Requirements

  • Trading members must adhere to the 25% maximum limit per security when depositing as margin collateral
  • Members must ensure deposits do not exceed the overall permitted quantity specified for each security
  • VAR-based haircuts must be applied to all approved securities
  • Currently, these securities are not available for use in SLB (Securities Lending and Borrowing) segment

Important Dates

No specific effective date mentioned in the circular content provided.

Impact Assessment

This revision impacts all NSE trading members who utilize equity shares as collateral for margin requirements. The updated list provides clarity on permitted quantities and ensures proper risk management through VAR-based haircuts. The inclusion of 40 liquid, large-cap securities provides members with adequate options for margin collateral while maintaining concentration limits through the 25% cap per security.

Impact Justification

Regular update to approved securities list for margin collateral purposes, affects all trading members using these securities for margin requirements