Description
NSE Clearing Limited has added UCO Bank to the list of banks authorized to provide electronic bank guarantees as collateral in the Commodity Derivatives Segment.
Summary
NSE Clearing Limited has expanded its Electronic Bank Guarantee (E-BG) facility by adding UCO Bank to the list of authorized banks. Clearing members can now submit electronic bank guarantees from UCO Bank as collateral in the Commodity Derivatives Segment. This builds upon the E-BG facility introduced via circular 0045/2024 dated March 13, 2024.
Key Points
- UCO Bank is now authorized to provide Bank Guarantees in electronic form
- E-BGs from UCO Bank will be accepted as collateral from clearing members
- This applies to the Commodity Derivatives Segment
- For queries, members can contact NCL at 1800 266 0050 (IVR Option 2) or email collaterals_ops@nsccl.co.in
Regulatory Changes
No regulatory changes. This is an expansion of the existing Electronic Bank Guarantee facility to include an additional authorized bank.
Compliance Requirements
- Clearing members and custodians wishing to use UCO Bank for electronic bank guarantees must follow the procedures established in the original circular 0045/2024
- E-BGs must be submitted in the prescribed electronic format
- All existing requirements for collateral submission remain applicable
Important Dates
- Effective Date: January 06, 2026 (circular issue date)
Impact Assessment
Operational Impact: Low - This is a positive development that provides clearing members with an additional banking option for submitting collateral in electronic form. Members who maintain relationships with UCO Bank can now leverage this facility.
Market Impact: Minimal - This administrative change does not affect trading operations, margin requirements, or market structure. It simply expands the list of banks supporting the E-BG facility.
Member Impact: Beneficial for members using UCO Bank, as they gain flexibility in collateral management through electronic submission rather than physical bank guarantees.
Impact Justification
Administrative update adding one bank to existing E-BG facility; affects only members using UCO Bank for collateral