Description

Updated list of 40 equity securities eligible for non-cash component of liquid assets with applicable haircuts and quantity limits for clearing members.

Summary

NSE has issued a revised list of approved equity securities that clearing members can deposit as non-cash component of liquid assets for margin requirements. The list comprises 40 blue-chip stocks including major index constituents. Each security is subject to VAR-based haircut and members can deposit each security up to a maximum of 25% of total margins.

Key Points

  • 40 equity securities approved for liquid asset collateral
  • VAR (Value at Risk) based haircuts applicable on all securities
  • Maximum 25% concentration limit per security of total margins
  • Overall permitted quantities specified across all segments
  • Memberwise permitted quantity for COM segment listed as N.A. for all securities
  • List includes major stocks: RELIANCE, HDFCBANK, ITC, ICICIBANK, INFY, SBIN, TCS, and others
  • Covers diverse sectors: Banking, IT, Auto, FMCG, Pharmaceuticals, Energy, Telecom

Regulatory Changes

This circular updates the approved securities list for collateral purposes. The VAR-based haircut methodology ensures dynamic risk adjustment based on market volatility. The 25% concentration limit per security prevents excessive exposure to single stock risk in the collateral pool.

Compliance Requirements

  • Clearing members must limit deposits of each approved security to maximum 25% of total margin requirements
  • Only securities listed in Annexure 1, 2 & 3 are eligible for non-cash liquid asset component
  • Members must comply with overall permitted quantity limits specified for each security across all segments
  • VAR-based haircuts will be applied to determine collateral value

Important Dates

Circular Date: December 22, 2025 Effective Date: Not explicitly specified in the provided content

Impact Assessment

Market Impact: Medium - affects collateral management for clearing members but does not change trading rules or market structure.

Operational Impact: Clearing members need to monitor their collateral composition to ensure compliance with the 25% per-security limit and use only approved securities from the updated list.

Liquidity Impact: The approved list consists of highly liquid large-cap stocks with substantial permitted quantities, ensuring adequate collateral availability while maintaining risk management standards through VAR haircuts and concentration limits.

Impact Justification

Routine update of approved securities list affecting clearing member collateral requirements with standardized VAR-based haircuts and concentration limits