Description

NSE Clearing adds UCO Bank to the list of banks authorized to provide Electronic Bank Guarantees (E-BG) as collaterals from clearing members under SLBS.

Summary

NSE Clearing Limited has added UCO Bank to the list of banks authorized to provide Electronic Bank Guarantees (E-BG) as collaterals from clearing members under the Securities Lending & Borrowing Scheme (SLBS). This is an expansion of the existing E-BG facility introduced via circular 027/2024 dated March 13, 2024.

Key Points

  • UCO Bank added as authorized bank for Electronic Bank Guarantee facility
  • Applies to Securities Lending & Borrowing Scheme (SLBS) participants
  • E-BG can be used as collateral by clearing members
  • Circular reference: 002/2026 (NCL/CMPT/72166)
  • Issued by NSE Clearing Limited’s Securities Lending & Borrowing Scheme Department

Regulatory Changes

No new regulatory changes. This circular expands the list of eligible banks under the existing Electronic Bank Guarantee framework established in March 2024.

Compliance Requirements

  • Participants and custodians can now accept E-BG from UCO Bank as collateral
  • No additional compliance requirements beyond existing E-BG acceptance procedures
  • For queries, participants can contact NSE Clearing at collaterals_ops@nsccl.co.in or call 1800 266 0050 (IVR Option 2)

Important Dates

  • Effective Date: January 06, 2026
  • Reference to original E-BG facility: March 13, 2024 (Circular 027/2024)

Impact Assessment

Operational Impact: Minimal - clearing members and participants now have one additional bank option (UCO Bank) for submitting electronic bank guarantees as collateral.

Market Impact: Low - this is an administrative expansion of existing infrastructure, providing participants more flexibility in collateral management but not changing any fundamental market operations or trading rules.

Participant Benefit: Increased choice and potentially improved efficiency for participants who have banking relationships with UCO Bank.

Impact Justification

Administrative update adding one more bank to existing E-BG facility; no change to existing processes or requirements for participants