Description

NSE Clearing updates the list of ETFs eligible for cross margining benefits effective November 26, 2025, including 64 eligible ETFs across various indices.

Summary

NSE Clearing Limited has issued a revised list of Exchange Traded Funds (ETFs) eligible for cross margining benefits, effective November 26, 2025. This circular updates the previous list published on October 27, 2025 (circular no. 0342/2025). The revised list includes 64 ETFs from various fund houses covering Nifty 50, Bank Nifty, sectoral indices, midcap, and other benchmark indices. Each ETF has specified minimum quantity requirements for cross margin eligibility.

Key Points

  • Total 64 ETFs eligible for cross margining benefits
  • Effective date: November 26, 2025
  • Covers ETFs from major fund houses including Nippon India, SBI, ICICI Prudential, UTI, Kotak, Mirae Asset, HDFC, Axis, Aditya Birla, DSP, Quantum, LIC, Bandhan, Tata, and Motilal Oswal
  • Includes Nifty 50, Bank Nifty, PSU Bank, Midcap, Sectoral (IT, Pharma, Auto, Infrastructure, Healthcare, BFSI), and thematic ETFs
  • Each ETF has specific minimum quantity requirements ranging from 500 to 75,000 units
  • Cross margining allows margin benefit for offsetting positions in Cash and F&O segments

Regulatory Changes

This is a routine revision of the cross margin eligible ETF list. No new regulatory framework changes are introduced. The circular updates the previous list dated October 27, 2025, reflecting changes in eligibility criteria or addition/removal of ETFs based on liquidity and other parameters.

Compliance Requirements

  • Members must ensure compliance with the revised list from November 26, 2025
  • Positions in the listed ETFs must meet the specified minimum quantity requirements to avail cross margin benefits
  • Cross margin benefits apply only to the ETFs listed in this circular
  • Members should update their systems to reflect the revised eligibility list

Important Dates

  • Circular Date: November 24, 2025
  • Effective Date: November 26, 2025
  • Previous Circular Reference: October 27, 2025 (Circular No. 0342/2025, Download Ref: NCL/CMPT/70981)

Impact Assessment

Market Impact: Medium - This revision affects traders and institutions utilizing cross margining benefits between Cash and F&O segments. The updated list may include new ETFs or remove previously eligible ones, impacting margin utilization strategies.

Operational Impact: Members need to update their risk management systems to reflect the revised list. Traders holding positions in removed ETFs (if any) will lose cross margin benefits, while those trading newly added ETFs can optimize margin requirements.

Investor Impact: Retail and institutional investors using ETFs for hedging or arbitrage strategies need to verify their holdings against the revised list to ensure continued margin benefits. Changes in minimum quantity requirements may affect smaller traders’ ability to utilize cross margining for certain ETFs.

Contact Information

Impact Justification

Operational update affecting margin requirements for traders using ETFs. Medium impact as it affects cross-margining calculations but is a routine revision of eligible securities list.