Description

NSE Clearing updates the list of ETFs eligible for cross margining with revised minimum quantity requirements, effective December 31, 2025.

Summary

NSE Clearing Limited has issued a revised list of Exchange Traded Funds (ETFs) eligible for cross margining, effective December 31, 2025. The circular updates the previous list from November 24, 2025 (circular 0376/2025) and specifies minimum quantity requirements for 66 eligible ETFs across various indices including Nifty 50, Bank Nifty, IT, Pharma, Auto, PSU Bank, Midcap, and sector-specific funds.

Key Points

  • 66 ETFs are eligible for cross margining facility
  • Effective date: December 31, 2025
  • Minimum quantities range from 500 units to 75,000 units depending on the ETF
  • Includes ETFs from major fund houses: Nippon India, SBI, ICICI Prudential, Kotak Mahindra, Mirae Asset, HDFC, UTI, Aditya Birla Sun Life, Axis, LIC MF, Motilal Oswal, Quantum, and Tata
  • Covers diverse indices: Nifty 50, Nifty Bank, Nifty Next 50, Nifty IT, Nifty Pharma, Nifty Auto, PSU Bank, Midcap 50, Midcap 150, Nifty 100, Infrastructure, and sectoral indices

Regulatory Changes

This circular revises the list of cross margin eligible ETFs, superseding the previous circular 0376/2025 dated November 24, 2025. The cross margining facility allows members to optimize their margin requirements across cash and derivatives segments when holding eligible ETFs.

Compliance Requirements

  • Members utilizing cross margining facility must ensure positions meet the minimum quantity requirements specified for each ETF
  • Quantities must be in multiples of the minimum specified quantity
  • The revised list becomes applicable from December 31, 2025

Important Dates

  • Circular Date: December 29, 2025
  • Effective Date: December 31, 2025
  • Previous Circular: November 24, 2025 (circular 0376/2025)

Impact Assessment

Market Impact: Medium - affects trading members who use cross margining facility with ETFs. The updated list may include additions or removals of eligible ETFs and revised minimum quantities, which could impact margin optimization strategies.

Operational Impact: Members need to review their current ETF holdings against the revised list and ensure compliance with new minimum quantity requirements for cross margining benefits. The changes are effective from December 31, 2025, providing a 2-day notice period for adjustments.

Trading Impact: Traders using ETFs for hedging or arbitrage strategies with cross margining benefits should verify their positions meet the updated criteria to continue receiving margin offsets.

Impact Justification

Medium importance as it affects margin calculations for traders using ETFs, but is a routine update of eligible securities list. Medium impact on traders who use cross-margining facility with ETFs.