Description

Updated list of equity shares eligible as non-cash component of liquid assets for margin requirements, with applicable haircuts and quantity limits per security.

Summary

NSE has issued a revised list of equity shares approved as non-cash components of liquid assets for margin requirements. The circular specifies 40+ securities eligible for deposit as collateral, with VAR-based haircuts applied. Members can deposit each security subject to a maximum of 25% of total margins, with specific overall permitted quantities defined for each security across all segments.

Key Points

  • Applicable haircut for all listed securities is based on Value at Risk (VAR)
  • Maximum 25% of total margins can be in any single security
  • Overall permitted quantities specified for each approved security across all segments
  • Memberwise permitted quantity for CM Segment marked as “N.A” for all securities
  • List includes major large-cap stocks across sectors including banking, technology, energy, automotive, and FMCG
  • Highest permitted quantities include ITC Limited (2.5 billion), HDFC Bank (2.6 billion), and ETERNAL LIMITED (1.8 billion)

Regulatory Changes

This circular represents a routine periodic update to the approved securities list. The fundamental framework remains unchanged:

  • VAR-based haircut methodology continues
  • 25% concentration limit per security remains in effect
  • Overall permitted quantity framework maintained with updated quantities

Compliance Requirements

  • Trading members must ensure collateral deposits comply with the 25% per security limit
  • Only securities listed in Annexure 1 are eligible as non-cash liquid assets
  • Members must adhere to overall permitted quantity limits specified for each security
  • Deposits must be evaluated with applicable VAR-based haircuts

Important Dates

  • Circular Release Date: December 22, 2025
  • Effective Date: Not explicitly specified (typically immediate upon release)

Impact Assessment

Market Impact: Low to medium. This is a routine administrative update that provides clarity on eligible collateral securities. The inclusion of 40+ major large-cap stocks ensures adequate liquidity and choice for members.

Operational Impact: Trading members need to review their current collateral holdings against the updated list and ensure compliance with concentration limits and permitted quantities. The VAR-based haircut approach provides risk-appropriate margining.

Sectoral Coverage: The approved list provides diversified sectoral representation including financials (HDFCBANK, ICICIBANK, AXISBANK, KOTAKBANK, SBIN), technology (INFY, HCLTECH), energy (RELIANCE, ONGC, NTPC, COALINDIA), automotive (MARUTI, M&M, BAJAJ-AUTO, EICHERMOT), and consumer goods (ITC, HINDUNILVR, NESTLEIND, ASIANPAINT).

Impact Justification

Routine update to approved securities list for collateral purposes. Affects trading members' margin deposit options but is a periodic administrative revision rather than a policy change.