Description

NSE Clearing revises timings for collateral addition and release, including cash, FDR, bank guarantees, and pledged securities across multiple batches.

Summary

NSE Clearing Limited has revised the timings for collateral addition and release based on member feedback. The changes affect cash, Fixed Deposit Receipts (FDR), bank guarantees, and pledged securities. The new timings provide extended cut-off times and multiple batches throughout the day for pledged securities release, offering greater flexibility to participants.

Key Points

  • Cut-off time for cash and FDR collateral deposit extended to 7:30 pm on all settlement days
  • Cash/FDR/Bank Guarantee release requests accepted until 8:00 pm for both immediate and EOD/value date requests
  • Pledged securities release available in 10 batches throughout the trading day (9:00 am to 7:00 pm)
  • Additional immediate/EOD release option for pledged securities with 8:00 pm cut-off
  • Repledge securities for pay-in must be requested one day prior to pay-in date
  • Changes supersede previous circular 037/2025 dated April 30, 2025

Regulatory Changes

This circular revises the collateral management framework previously established in circular ref. no. 037/2025 (Download Ref No: NCL/CMPT/67763 dated April 30, 2025). The revisions are based on feedback received from members and aim to provide more flexible timing options for collateral operations.

Compliance Requirements

  • All participants and custodians must adhere to the new collateral timing schedule
  • Cash and FDR deposits must be completed by 7:30 pm on settlement days
  • Collateral release requests must be submitted within specified cut-off times for each batch
  • For repledge securities towards pay-in requirements, clearing members must ensure requests are made one day prior to pay-in date, not on the pay-in date itself
  • Contact collaterals_ops@nsccl.co.in or call 1800 266 0050 (IVR Option 2) for queries

Important Dates

  • Effective Date: January 19, 2026
  • Circular Issue Date: January 16, 2026
  • Reference Circular: 037/2025 dated April 30, 2025

Impact Assessment

The revised timings provide enhanced operational flexibility for market participants in managing their collateral positions. The extension of cash/FDR deposit cut-off to 7:30 pm and the introduction of 10 staggered batches for pledged securities release throughout the day allows participants better liquidity management and reduces operational pressure. The change particularly benefits participants who need to adjust collateral positions during market hours or near end-of-day. This is an operational enhancement with medium impact on daily workflows of participants and custodians engaged in securities lending and borrowing activities.

Impact Justification

Operational change affecting collateral management timings for all participants and custodians. Medium impact as it modifies daily operational procedures but does not change fundamental requirements or market structure.