Description

Updated list of Sovereign Gold Bonds (SGBs) approved as collateral for liquid assets with 10% haircut, including 42 SGB securities issued between 2026-2031.

Summary

NSE has issued a revised list of Sovereign Gold Bonds (SGBs) and other debt securities approved as collateral that form part of the cash component of liquid assets. The circular specifies that all SGB/G-Sec/T-Bills issued by RBI during the month shall be accepted from the date of issue. The annexure lists 42 Sovereign Gold Bonds with maturity dates ranging from 2026 to 2031, all carrying a uniform haircut of 10% (0.1).

Key Points

  • 42 Sovereign Gold Bonds approved as collateral with 10% haircut
  • All SGBs carry 2.50% coupon rate
  • Maturity periods range from 2026 to 2031
  • All SGB/G-Sec/T-Bills issued by RBI during the month accepted from date of issue
  • Each SGB has unique ISIN, security description, and trading symbol
  • Uniform applicable haircut of 0.1 (10%) across all listed SGBs

Regulatory Changes

No new regulatory changes. This is a routine update to the list of approved securities that can be accepted as collateral. The framework for accepting SGBs, G-Secs, and T-Bills as part of liquid assets remains unchanged.

Compliance Requirements

  • Market participants must refer to this revised list when accepting Sovereign Gold Bonds as collateral
  • Apply the specified haircut of 10% to all listed SGBs when calculating collateral value
  • Accept all new SGB/G-Sec/T-Bills issued by RBI from their date of issue
  • Use the specified ISINs and symbols for proper identification of approved securities

Important Dates

  • Circular Date: December 22, 2025
  • Effective Date: Immediate (all RBI-issued securities accepted from date of issue)
  • SGB Maturity Range: 2026 to 2031 (various maturity dates for different series)

Impact Assessment

Market Impact: Minimal. This is an administrative update that provides clarity on which Sovereign Gold Bonds are approved as collateral. The 10% haircut is standard and consistent across all SGBs.

Operational Impact: Low. Market participants and clearing members need to update their approved securities list but no operational process changes are required.

Liquidity Impact: Neutral. The inclusion of 42 SGBs provides adequate options for collateral management, supporting liquidity in the debt market segment without introducing new restrictions or requirements.

Impact Justification

Routine update to list of approved collateral securities; no policy changes, only listing of existing SGBs with standard 10% haircut