Description

NSE Clearing updates the list of ETFs eligible for cross margining with effect from November 26, 2025, including 65 ETFs across various indices and sectors.

Summary

NSE Clearing Limited has issued a revised list of Exchange Traded Funds (ETFs) eligible for cross margining benefits in the Futures & Options segment. The updated list will be effective from November 26, 2025, and supersedes the previous circular dated October 27, 2025. The list includes 65 ETFs from various fund houses covering major indices like Nifty 50, Bank Nifty, sectoral indices, and thematic funds, each with specified minimum quantity requirements.

Key Points

  • Revised list of cross margin eligible ETFs effective from November 26, 2025
  • 65 ETFs included covering Nifty 50, Bank Nifty, Nifty Next 50, Midcap, sectoral and thematic indices
  • ETFs from multiple AMCs including Nippon India, SBI, ICICI Prudential, UTI, Kotak, HDFC, Mirae Asset, Axis, and others
  • Each ETF has specific minimum quantity requirements ranging from 500 to 75,000 units
  • Cross margining allows reduced margin requirements for offsetting positions in cash and derivatives segments
  • Replaces previous circular no. 0138/2025 dated October 27, 2025

Regulatory Changes

This circular updates the list of ETFs eligible for cross margin benefits. Cross margining is a risk management mechanism that recognizes the offsetting nature of positions across different segments (cash and derivatives) and provides margin benefits by reducing the overall margin requirement. The inclusion or exclusion of specific ETFs impacts which securities can avail these benefits.

Compliance Requirements

  • Trading members must ensure minimum quantity requirements are met for cross margin benefits
  • Positions must be maintained in multiples of the specified minimum quantities
  • Members should update their risk management systems with the revised list effective November 26, 2025
  • Only the listed ETFs are eligible for cross margining benefits in the F&O segment

Important Dates

  • Circular Issue Date: November 24, 2025
  • Effective Date: November 26, 2025
  • Reference Circular: 0138/2025 dated October 27, 2025 (Download Reference No: NCL/CMPT/70982)

Impact Assessment

Market Impact: Medium - The revised list impacts margin efficiency for traders and investors holding both ETF positions in cash segment and F&O positions. This can influence liquidity and trading volumes in the eligible ETFs.

Operational Impact: Medium - Trading members need to update their margin calculation systems and communicate changes to clients who may be utilizing cross margin benefits.

Member Impact: Positive for members and clients holding eligible ETF positions as it provides capital efficiency through reduced margin requirements, freeing up capital for other trading opportunities.

Contact Information: For queries, members can contact NSE Clearing at 18002660050 (IVR Option - 2) or email fo_clearing_ops@nsccl.co.in

Impact Justification

Updates cross margin eligible ETF list affecting margin benefits for F&O traders and investors with ETF positions. Medium impact as it provides capital efficiency through reduced margin requirements but doesn't introduce new rules or restrictions.