Description

NSE Clearing adds UCO Bank to the list of banks authorized to provide Electronic Bank Guarantees (E-BG) as collaterals from clearing members in the F&O segment.

Summary

NSE Clearing Limited has expanded its Electronic Bank Guarantee (E-BG) facility by adding UCO Bank to the list of authorized banks. This allows clearing members and custodians in the Futures and Options segment to submit Electronic Bank Guarantees from UCO Bank as collateral.

Key Points

  • UCO Bank has been added as an authorized provider of Electronic Bank Guarantees
  • This facility is available to all clearing members, custodians, and Professional Clearing Members (PCM)
  • The addition is an extension of the E-BG facility introduced via Circular 028/2024 dated March 13, 2024
  • Circular issued by Huzefa Mahuvawala, Chief Risk Officer, NSE Clearing Limited
  • Reference: NCL/CMPT/72163, Circular 003/2026

Regulatory Changes

No new regulatory changes. This is an incremental update to the existing Electronic Bank Guarantee acceptance framework.

Compliance Requirements

  • Clearing members wishing to provide UCO Bank E-BGs as collateral can now do so through the established E-BG framework
  • No additional compliance actions required; existing E-BG procedures apply
  • Contact: collaterals_ops@nsccl.co.in or 1800 266 0050 (IVR Option 2) for queries

Important Dates

  • Effective Date: January 06, 2026 (circular issue date)

Impact Assessment

Operational Impact: Minimal. This is an administrative expansion of an existing facility providing clearing members with an additional banking option for submitting electronic collateral.

Market Impact: None. Does not affect trading rules, margin requirements, or market structure.

Member Impact: Positive for members banking with UCO Bank, as they now have more flexibility in collateral management through electronic submission rather than physical bank guarantees.

Impact Justification

Administrative update adding one bank to existing E-BG facility. No changes to regulations or compliance requirements. Limited operational impact affecting only members choosing UCO Bank for collateral.