Description

NSE Clearing revises timings for collateral addition and release based on member feedback, effective January 19, 2026.

Summary

NSE Clearing Limited has revised the timings for collateral addition and release in the Currency Derivatives Segment based on feedback from members. The new timings extend the cut-off time for cash and FDR deposits to 7:30 PM and provide multiple batch timings throughout the day for pledged securities release, ranging from 9:00 AM to 8:00 PM.

Key Points

  • Cut-off time for cash and Fixed Deposit Receipt (FDR) collateral deposit extended to 7:30 PM on all settlement days
  • Release of cash/FDR/bank guarantee collateral allowed until 8:00 PM for both immediate and EOD/value date requests
  • Pledged securities release available in 10 batches throughout the day with cut-off times from 9:00 AM to 7:00 PM for immediate requests
  • Pledged securities can also be released with immediate/EOD requests until 8:00 PM
  • Special requirement for repledge securities: requests must be made one day prior to pay-in, not on the pay-in date itself

Regulatory Changes

This circular supersedes the timing provisions in circular ref. no. 043/2025 (Download Ref No: NCL/CMPT/67752 dated April 29, 2025). The revised timings provide greater flexibility to members by:

  • Extending deposit cut-off times from earlier schedules
  • Introducing multiple batch processing windows for pledged securities
  • Allowing members to manage collateral throughout the trading day

Compliance Requirements

For All Members/Custodians/PCM:

  • Ensure cash and FDR collateral deposits are made by 7:30 PM on settlement days
  • Submit collateral release requests within the specified cut-off times for each collateral type
  • For repledge securities towards pay-in requirements, submit release requests one day prior to pay-in date (not on the pay-in date itself)
  • Adjust internal operational processes to align with the new timing schedule

Contact for Queries:

Important Dates

  • Circular Issue Date: January 16, 2026
  • Effective Date: January 19, 2026
  • Reference Circular: 043/2025 dated April 29, 2025

Impact Assessment

Operational Impact:

  • Positive impact for members through extended timings providing greater flexibility in collateral management
  • Multiple batch windows allow better optimization of collateral utilization throughout the day
  • Improved liquidity management with later cut-off times

Member Benefits:

  • Enhanced operational flexibility with 7:30 PM cut-off for cash and FDR deposits
  • Ten different batch timings for pledged securities release provide more control over collateral positions
  • Better alignment with end-of-day settlement processes

Risk Management:

  • Maintains clearing corporation’s risk management framework while accommodating member requirements
  • Clear segregation between different collateral types and request types ensures orderly processing

Impact Justification

Operational change affecting collateral management timings for currency derivatives segment members. Medium impact as it affects daily operational processes but provides more flexibility with extended timings.