Description

NSE Clearing extends collateral allocation window timings for January 2, 2026, with cash/FDR up-streaming till 8:00 PM and allocation window till 10:00 PM.

Summary

NSE Clearing Limited has announced modified timings for collateral allocation operations specifically for January 2, 2026. This circular, issued in reference to SEBI circular SEBI/HO/MIRSD/DOP/P/CIR/2022/101 dated July 27, 2022, regarding settlement of running accounts of client funds lying with Trading Members, extends the operating windows for collateral up-streaming, down-streaming, and allocation activities.

Key Points

  • Collateral up-streaming and down-streaming window for cash and fixed deposit receipts (FDR) will remain open till 8:00 PM on January 2, 2026
  • Collateral allocation window will remain open till 10:00 PM on January 2, 2026
  • NSE Clearing will endeavor to release Cash/FDR/Bank Guarantee (BG) within one hour of request from clearing members
  • Release of collateral is subject to availability post necessary margin checks
  • Changes apply to the Futures and Options segment
  • Circular issued by Chief Risk Officer Huzefa Mahuvawala

Regulatory Changes

No permanent regulatory changes. This is a temporary operational timing adjustment for a specific date (January 2, 2026) related to existing SEBI framework on settlement of client funds.

Compliance Requirements

  • Clearing members must note the extended timings for January 2, 2026
  • Members can submit collateral up-streaming and down-streaming requests for cash and FDR until 8:00 PM
  • Collateral allocation requests can be submitted until 10:00 PM
  • Members should ensure compliance with margin requirements for collateral release eligibility
  • Contact: collaterals_ops@nsccl.co.in or 1800 266 0050 (IVR Option 2) for queries

Important Dates

  • December 29, 2025: Circular issue date
  • January 2, 2026: Effective date for modified collateral allocation timings
    • Cash/FDR up-streaming and down-streaming window: Till 8:00 PM
    • Collateral allocation window: Till 10:00 PM

Impact Assessment

This circular has minimal market impact as it represents a temporary one-day operational adjustment rather than a structural change. The extended timings for January 2, 2026, may provide clearing members with additional flexibility for collateral management on that specific date, potentially due to the New Year holiday period. The change affects operational workflows for clearing members managing collateral in the F&O segment but does not alter margin requirements, collateral types, or risk management frameworks. Members benefit from extended processing windows and the commitment to one-hour turnaround for collateral release requests.

Impact Justification

Temporary one-day timing adjustment for collateral allocation windows; affects operational procedures but does not change fundamental margin or collateral requirements.