Description

Updated list of 40 equity securities approved as non-cash component of liquid assets for margin requirements in Futures & Options segment with applicable haircuts and quantity limits.

Summary

NSE has issued a revised list of 40 equity securities that members can deposit as part of the non-cash component of liquid assets for margin requirements in the Futures & Options segment. These securities are subject to Value-at-Risk (VAR) based haircuts, with each security limited to a maximum of 25% of total margins per member.

Key Points

  • 40 equity securities approved for non-cash margin component
  • VAR-based haircuts applicable on all listed securities
  • Maximum 25% of total margins can be in any single security per member
  • Overall permitted quantities specified across all segments
  • Memberwise permitted quantity for FO segment listed as N.A. for all securities
  • List includes major blue-chip stocks from various sectors

Approved Securities

The approved list includes major stocks such as:

  • Banking & Financial Services: HDFCBANK, ICICIBANK, SBIN, AXISBANK, KOTAKBANK, BAJFINANCE, BAJAJFINSV, SBILIFE, HDFCLIFE, JIOFIN, SHRIRAMFIN
  • Technology: INFY, HCLTECH
  • Energy & Utilities: RELIANCE, ONGC, NTPC, POWERGRID, COALINDIA
  • Automotive: MARUTI, BAJAJ-AUTO, M&M, EICHERMOT
  • Industrial & Infrastructure: LT, JSWSTEEL, HINDALCO, GRASIM, ADANIPORTS
  • FMCG & Consumer: ITC, HINDUNILVR, NESTLEIND, ASIANPAINT
  • Healthcare: APOLLOHOSP, DRREDDY, CIPLA, MAXHEALTH
  • Telecom & Aviation: BHARTIARTL, INDIGO
  • Defense: BEL
  • Conglomerate: ADANIENT, ETERNAL

Regulatory Changes

This circular provides an updated version of the approved securities list, reflecting current market conditions and security eligibility criteria. The VAR-based haircut mechanism ensures dynamic risk management aligned with market volatility.

Compliance Requirements

  • Trading members must limit deposits of each individual security to maximum 25% of total margin requirements
  • Securities must be deposited within the overall permitted quantities specified for each stock
  • VAR-based haircuts will be applied to determine collateral value
  • Members should refer to Annexures 1, 2, 3, 4, 5, 6 & 7 for complete details

Important Dates

Effective date not explicitly mentioned in the provided content. Members should refer to the complete circular for implementation timeline.

Impact Assessment

Market Impact: Medium - Provides flexibility to trading members in managing margin requirements through diversified equity collateral while maintaining risk controls.

Operational Impact: The 25% cap per security ensures diversification and reduces concentration risk in margin deposits. VAR-based haircuts align collateral values with market risk, providing dynamic risk management.

Member Impact: Trading members with holdings in these 40 securities can optimize their margin utilization and capital efficiency in F&O trading operations.

Impact Justification

Updates the approved securities list for margin collateral in F&O segment, affecting trading members' margin deposit options with specific quantity limits and VAR-based haircuts