Description

NSE updates the list of privately issued corporate bonds eligible and ineligible for DVP-3 settlement on the Institutional Platform of Debt Segment, effective December 15, 2025.

Summary

NSE has issued a revised list of privately issued corporate bonds that are eligible (flagged as ‘a’) and ineligible (flagged as ’d’) for Delivery versus Payment-3 (DVP-3) settlement on the Institutional Platform of Debt Segment. This circular references previous circulars from May 8, 2013 (NSE/CML/23366) and October 25, 2013 (NSE/DS/24832). The revised list includes bonds from major issuers such as Export Import Bank of India, REC Limited, Indian Railway Finance Corporation, LIC Housing Finance, and Power Finance Corporation.

Key Points

  • Revised eligibility list for corporate bonds under DVP-3 settlement mechanism
  • Bonds are flagged as ‘a’ (eligible) or ’d’ (ineligible) for DVP-3 settlement
  • Applies to Institutional Platform of Debt Segment only
  • Complete list provided in Annexure I with detailed bond specifications
  • Includes bonds from government-backed and public sector entities
  • Bonds listed include various maturity dates ranging from February 2027 to June 2027
  • All listed bonds in the excerpt carry AAA credit ratings from multiple agencies

Regulatory Changes

This circular updates the existing framework for DVP-3 settlement eligibility established through previous circulars dated May 8, 2013 and October 25, 2013. The DVP-3 settlement mechanism allows for delivery of securities against payment, and this list revision ensures clarity on which privately issued corporate bonds qualify for this settlement method on the institutional platform.

Compliance Requirements

  • Members must note the updated eligibility list for DVP-3 settlement
  • Trading members must ensure compliance with the revised list when executing institutional debt trades
  • Only bonds flagged as ‘a’ in Annexure I are eligible for DVP-3 settlement
  • Bonds flagged as ’d’ are ineligible and cannot be settled under DVP-3 mechanism
  • Members should update their internal systems and processes to reflect the new eligibility status

Important Dates

  • Circular Date: November 12, 2025
  • Effective Date: December 15, 2025
  • Circular Reference: NSE/CML/71798 (2435/2025)

Impact Assessment

This circular has moderate operational impact on institutional investors and trading members participating in the debt segment. The revision of the DVP-3 eligibility list affects settlement processes and liquidity for specific corporate bonds. Institutional investors will need to review their bond portfolios to understand which securities can be settled under the DVP-3 mechanism. The bonds listed in the excerpt are from highly rated public sector entities (Export Import Bank, REC Limited, IRFC, LIC Housing Finance, Power Finance Corporation), all carrying AAA ratings, suggesting these are likely to remain eligible. Trading members must update their systems before the December 15, 2025 effective date to ensure proper settlement processing. The impact is contained to the institutional debt market segment and does not affect retail investors or equity markets.

Impact Justification

Operational update affecting institutional debt trading settlement mechanisms for specific corporate bonds. Medium impact as it affects institutional investors and debt market operations but is a routine eligibility list update.