Description

NSE Clearing updates the list of ETFs eligible for cross margining benefits in the Futures & Options segment, effective December 31, 2025.

Summary

NSE Clearing Limited has issued a revised list of Exchange Traded Funds (ETFs) eligible for cross margining benefits in the Futures & Options segment. The updated list contains 66 ETF symbols from various fund houses including Nippon India, SBI, ICICI Prudential, Kotak Mahindra, HDFC, Mirae Asset, DSP, Aditya Birla Sun Life, UTI, Axis, Motilal Oswal, Quantum, Tata, and LIC Mutual Fund. Each ETF has specified minimum quantity requirements ranging from 500 to 75,000 units.

Key Points

  • Revised list of cross margin eligible ETFs effective from December 31, 2025
  • Total of 66 ETF symbols included across major index categories (Nifty 50, Bank Nifty, IT, PSU Banks, Midcap, etc.)
  • Minimum quantity requirements specified for each ETF in multiples
  • Cross margining allows reduced margin requirements when holding offsetting positions in cash and F&O segments
  • Fund houses covered: Nippon India, SBI, ICICI Prudential, Kotak, HDFC, Mirae Asset, DSP, Birla Sun Life, UTI, Axis, Motilal Oswal, Quantum, Tata, and LIC MF
  • Supersedes previous circular no. 0152/2025 dated November 24, 2025

Regulatory Changes

This circular updates the framework for cross margining benefits by revising the list of eligible ETFs. Cross margining is a facility that allows members to benefit from reduced margin requirements when they hold offsetting positions in the cash (ETF holdings) and derivatives (F&O positions) segments. The revision reflects changes in ETF universe, liquidity parameters, or eligibility criteria maintained by NSE Clearing.

Compliance Requirements

  • Trading members must ensure minimum quantity requirements are met for cross margin benefits
  • ETF holdings must be in the specified symbols and quantities as listed in the circular
  • Members should update their risk management systems to reflect the revised eligible ETF list
  • Cross margin benefits will apply only to positions meeting the specified criteria effective December 31, 2025
  • Contact NSE Clearing at fo_clearing_ops@nsccl.co.in or 18002660050 (IVR Option 2) for queries

Important Dates

  • Circular Date: December 29, 2025
  • Effective Date: December 31, 2025 - Revised list of cross margin eligible ETFs becomes applicable
  • Previous Circular: November 24, 2025 (Circular no. 0152/2025) - now superseded

Impact Assessment

For Trading Members: Members utilizing cross margining strategies will need to verify their ETF holdings against the updated list. Any ETFs removed from the previous list will no longer provide margin benefits, potentially increasing margin requirements for affected positions.

For Investors: Retail and institutional investors using ETFs for hedging F&O positions can continue to benefit from reduced margin requirements. The wide range of 66 eligible ETFs covering major indices (Nifty 50, Bank Nifty, IT, Midcap, sectoral indices) provides flexibility in portfolio construction and margin optimization.

Operational Impact: Low to medium - primarily administrative update requiring system updates by members. The minimum quantity requirements ensure sufficient liquidity and position sizes for effective cross margining.

Market Impact: Neutral - this is a routine update to maintain the cross margining framework. The broad coverage of major ETFs ensures continued availability of margin benefits for market participants.

Impact Justification

Administrative update affecting margin calculations for F&O traders using ETFs; provides cost efficiency benefits but does not change trading rules or create new obligations.