Description

Updated list of 40+ equity shares approved as non-cash component of liquid assets for Securities Lending and Borrowing (SLB) segment with applicable haircuts and quantity limits.

Summary

NSE has revised the list of approved equity securities that can be deposited as non-cash component of liquid assets for margin requirements. The circular specifies 40+ securities with applicable VAR-based haircuts and quantity restrictions. Members can deposit each security subject to a maximum of 25% of total margins, with overall permitted quantities defined across all segments.

Key Points

  • Applicable haircut for listed securities is based on VAR (Value at Risk)
  • Each security limited to maximum 25% of total margins per member
  • Overall permitted quantities specified across all segments
  • Securities currently marked as “N.A” for memberwise permitted quantity in SLB segment
  • List includes major blue-chip stocks across banking, IT, manufacturing, energy, and consumer sectors

Regulatory Changes

This circular updates the previous list of approved securities eligible for use as collateral. The revision includes quantity limits and margin concentration restrictions to manage risk exposure. The VAR-based haircut methodology remains applicable for all listed securities.

Compliance Requirements

  • Trading members must ensure deposits of individual securities do not exceed 25% of their total margin requirements
  • Members must adhere to overall permitted quantity limits specified for each security across all segments
  • Collateral deposits must comply with the revised list and applicable haircut percentages
  • Members should update their collateral management systems with the revised approved securities list

Important Dates

Effective date: December 22, 2025 (circular issuance date)

Impact Assessment

Market Impact: The revised list provides trading members with a diversified basket of 40+ high-quality securities for margin collateral purposes, including major constituents like RELIANCE, HDFCBANK, ICICIBANK, INFY, and ITC.

Operational Impact: Members need to review their existing collateral positions to ensure compliance with the 25% concentration limit per security and overall quantity restrictions. The inclusion of securities like ETERNAL (with very high permitted quantity of 1.8+ billion shares) alongside traditional blue chips provides flexibility in collateral management.

Risk Management: VAR-based haircuts and concentration limits help mitigate counterparty and concentration risks in the margin system while maintaining adequate liquidity coverage.

Impact Justification

Regular update to approved securities list for margin purposes affecting trading members' collateral options in SLB segment