Description

NSE Clearing withdraws previous circular and announces no trading and settlement in settlement number 2026011 for Securities Lending & Borrowing Scheme due to Municipal Corporation Elections in Maharashtra.

Summary

NSE Clearing Limited has issued a revised circular regarding changes to the Securities Lending & Borrowing Scheme (SLBS) settlement schedule due to a trading and settlement holiday on January 15, 2026, for Municipal Corporation Elections in Maharashtra. The circular withdraws the previous circular NCL/CMPT/72223 dated January 09, 2026, and announces that there will be no trading and settlement in settlement number 2026011. Updated settlement schedules are provided for First Leg Settlement (Type ‘L’), Reverse Leg Settlement (Type ‘P’), and Reverse Leg Auction (Type ‘Q’).

Key Points

  • Trading and settlement holiday on January 15, 2026, due to Municipal Corporation Elections in Maharashtra
  • Previous circular NCL/CMPT/72223 dated January 09, 2026, stands withdrawn
  • Settlement number 2026011 will have no trading and settlement
  • Reference to circular NCL/CMPT/72268 dated January 12, 2026, regarding transaction holiday
  • Revised settlement schedules provided in three annexures for different settlement types
  • First Leg Settlement schedule (Type ‘L’) covers settlements from 2026001 to 2026021, skipping 2026011
  • Reverse Leg Settlement schedule (Type ‘P’) covers 12 monthly series plus extended series
  • Reverse Leg Auction schedule (Type ‘Q’) provided with corresponding dates

Regulatory Changes

Withdrawal of previous circular NCL/CMPT/72223 dated January 09, 2026. The new circular supersedes the earlier guidance on settlement schedule changes, providing a complete trading and settlement holiday instead of just a settlement holiday.

Compliance Requirements

  • All Members, Custodians, and PCMs must adhere to the revised settlement schedules
  • No trades should be executed in settlement number 2026011
  • Participants must follow the updated First Leg Settlement dates from January 1-30, 2026 (excluding January 15)
  • Custodial confirmations must align with the revised trade dates
  • Settlement dates for all three settlement types (L, P, Q) must be observed as per the annexures
  • First occurrence of 01/X1 series in 2027 will be available from January 7, 2026, after expiry of current 01/X1 series on January 6, 2026

Important Dates

  • January 12, 2026: Circular issue date
  • January 15, 2026: Trading and settlement holiday (Municipal Corporation Elections in Maharashtra)
  • Settlement Number 2026011: Cancelled - no trading or settlement
  • First Leg Settlements: January 1-30, 2026 (excluding January 15), with settlements 2026001-2026021 (skipping 2026011)
  • Reverse Leg Settlements: Monthly series from January 6, 2026 (2026501) to January 5, 2027 (2027501)
  • January 6, 2026: Current 01/X1 series expiry
  • January 7, 2026: New 01/X1 series (expiring January 5, 2027) becomes available

Impact Assessment

Market Impact: High impact on Securities Lending & Borrowing Scheme participants as one full settlement cycle (2026011) is eliminated from the schedule. All members, custodians, and Professional Clearing Members (PCMs) must adjust their operational calendars and risk management systems.

Operational Impact: Participants need to update their settlement systems to skip settlement number 2026011 entirely. The gap in settlement numbers may require system configuration changes to prevent processing errors. Back-office operations must accommodate the revised custodial confirmation dates and settlement dates for 20 first leg settlements in January instead of 21.

Liquidity Impact: The holiday may temporarily affect securities lending and borrowing liquidity on January 15, 2026, with market participants unable to initiate new lending transactions or roll over existing positions on that date. However, the advance notice allows for pre-planning of liquidity requirements.

Contact Information: For queries, participants can contact NSE Clearing at 1800 266 0050 (IVR option 2) or email securities_ops@nsccl.co.in.

Impact Justification

Complete trading and settlement holiday for SLBS segment affects all participants. Settlement number 2026011 cancelled with revised schedules for first leg, reverse leg, and auction settlements.