Description

NSE Clearing revises timings for collateral addition and release across cash, FDR, bank guarantees, and pledged securities effective January 19, 2026.

Summary

NSE Clearing Limited has revised the timings for collateral addition and release in the Futures & Options segment based on member feedback. The changes extend cut-off times for cash and FDR deposits to 7:30 PM and introduce multiple batch timings throughout the day for pledged securities release requests, providing greater operational flexibility to members.

Key Points

  • Cut-off time for cash and Fixed Deposit Receipt (FDR) collateral deposit extended to 7:30 PM on all settlement days
  • Cash/FDR/Bank Guarantee release requests (both immediate and EOD/value date) can be made until 8:00 PM
  • Pledged securities release requests now available in 10 batches throughout the day from 9:00 AM to 7:00 PM
  • Final batch for pledged securities (immediate/EOD requests) available until 8:00 PM
  • Replaces previous timings specified in circular 043/2025 dated April 29, 2025
  • Changes made in response to member feedback for improved operational efficiency

Regulatory Changes

Revised Collateral Addition Timings:

  • Cash and FDR deposits: 7:30 PM cut-off (on all settlement days)

Revised Collateral Release Timings:

Cash/FDR/Bank Guarantee:

  • Immediate release requests: 8:00 PM cut-off
  • EOD/Value date release requests: 8:00 PM cut-off

Pledged Securities (10 batches):

  • Batch 1: 9:00 AM cut-off
  • Batch 2: 9:30 AM cut-off
  • Batch 3: 10:00 AM cut-off
  • Batch 4: 12:00 PM cut-off
  • Batch 5: 2:00 PM cut-off
  • Batch 6: 3:00 PM cut-off
  • Batch 7: 4:00 PM cut-off
  • Batch 8: 5:00 PM cut-off
  • Batch 9: 6:00 PM cut-off
  • Batch 10: 7:00 PM cut-off
  • Immediate/EOD requests: 8:00 PM cut-off

Compliance Requirements

For All Members/Custodians/PCM:

  • Adhere to new cut-off timings for collateral addition and release requests
  • Update internal systems and operational procedures to align with revised timings
  • Plan collateral management activities within the specified time windows

Critical Requirement for Repledge Securities:

  • Clearing members must request release of repledge securities for pay-in requirements one day prior to the pay-in date
  • Such requests cannot be made on the actual pay-in date

Contact Information:

Important Dates

  • Circular Issue Date: January 16, 2026
  • Effective Date: January 19, 2026
  • Reference Circular: 043/2025 (NCL/CMPT/67750) dated April 29, 2025

Impact Assessment

Operational Impact:

  • Positive: Extended cut-off times provide members with additional hours for collateral management, reducing end-of-day operational pressure
  • Flexibility: Multiple batch timings for pledged securities (10 batches) allow members to stagger release requests throughout the trading day
  • Risk Management: Enhanced timing flexibility may improve members’ ability to optimize collateral utilization while meeting margin requirements

Member Impact:

  • Clearing members, custodians, and Professional Clearing Members (PCM) need to update operational workflows
  • Treasury and collateral management teams gain extended windows for decision-making
  • Systems and internal controls may require reconfiguration to accommodate new timings

Market Impact:

  • Improved operational efficiency in the F&O clearing ecosystem
  • Better liquidity management for members through flexible collateral timing
  • Reduced settlement risk through accommodation of late-day collateral adjustments

Impact Justification

Operational change affecting collateral management timings for F&O members. Medium impact as it extends cut-off times providing more flexibility but requires operational adjustments by clearing members and custodians.