Description

NSE updates the list of equity shares approved as non-cash component of liquid assets with VAR-based haircuts, including 40 securities from major companies like HDFC Bank, Reliance, ICICI Bank, and others.

Summary

NSE has issued a revised list of approved equity securities that can be deposited as the non-cash component of liquid assets for margin purposes. The list contains 40 securities from large-cap companies including HDFC Bank, Reliance Industries, ICICI Bank, Infosys, and ITC. These securities are subject to VAR-based haircuts and members can deposit each security subject to a maximum of 25% of total margins.

Key Points

  • List includes 40 approved equity securities eligible as non-cash liquid asset component
  • VAR-based haircuts apply to all listed securities
  • Maximum 25% of total margins can be in any single security
  • Overall permitted quantities specified across all segments for each security
  • Member-wise permitted quantity for COM segment marked as N.A. for all securities
  • Includes major blue-chip stocks from diverse sectors: banking, IT, telecom, pharma, auto, energy

Approved Securities

The circular provides detailed information for each approved security including:

  • Symbol and ISIN code
  • Security name
  • Overall permitted quantity across all segments
  • Member-wise permitted quantity for COM segment

Notable inclusions:

  • Banking: HDFC Bank (2.66B shares), ICICI Bank (1.16B shares), SBI (814M shares), Axis Bank (551M shares), Kotak Mahindra Bank (294M shares)
  • Energy: Reliance Industries (1.32B shares), ONGC (1.03B shares), Coal India (454M shares), NTPC (948M shares)
  • IT: Infosys (647M shares), HCL Tech (211M shares)
  • FMCG: ITC (2.50B shares), Hindustan Unilever (179M shares), Nestle India (143M shares)
  • Auto: Maruti Suzuki (26M shares), Bajaj Auto (25M shares), Mahindra & Mahindra (190M shares)
  • Financials: Bajaj Finance (562M shares), Bajaj Finserv (131M shares), Jio Financial Services (671M shares)

Regulatory Changes

This represents an update to the existing approved securities list. The circular reflects current eligibility criteria and permitted quantities for securities that can be pledged as collateral.

Compliance Requirements

  • Trading members must ensure each security deposited does not exceed 25% of their total margin requirements
  • Members must adhere to the overall permitted quantities specified for each security
  • VAR-based haircuts must be applied when calculating the value of pledged securities
  • Only securities listed in the approved list can be used as non-cash liquid assets

Important Dates

Circular issued: November 20, 2025 Effective date: Not explicitly specified (typically immediate upon issuance)

Impact Assessment

Trading Members: This update allows trading members to optimize their collateral management by pledging approved equity securities instead of cash for margin requirements. The 25% cap per security encourages diversification.

Market Liquidity: Having a standardized list of 40 highly liquid securities provides certainty and consistency in collateral management practices across the exchange.

Risk Management: The VAR-based haircut approach ensures dynamic risk adjustment based on market volatility, protecting the exchange from collateral value fluctuations.

Operational Impact: Members need to review their current collateral positions and ensure compliance with the updated list and quantity limits.

Impact Justification

Updates the approved securities list for margin collateral purposes, affecting trading members' ability to pledge securities. Material for members managing collateral but routine operational update.