Description

NSE Clearing revises timing for collateral addition and release operations based on member feedback, with cash/FDR deposit cut-off extended to 7:30 PM and multiple batches for pledged securities release.

Summary

NSE Clearing Limited has revised the timings for collateral addition and release operations effective January 19, 2026. Based on member feedback, the cut-off time for cash and Fixed Deposit Receipt (FDR) deposits has been extended to 7:30 PM on all settlement days. The release timings have been restructured with 10 batches for pledged securities throughout the day, with cut-off times ranging from 9:00 AM to 8:00 PM, providing members with greater flexibility in managing their collateral requirements.

Key Points

  • Cut-off time for cash and FDR deposits extended to 7:30 PM on all settlement days
  • Cash/FDR/Bank Guarantee release requests can be submitted until 8:00 PM for both immediate and EOD/value date requests
  • Pledged securities release now available in 10 batches throughout the trading day
  • Immediate release requests for pledged securities accepted from 9:00 AM to 8:00 PM across multiple batches
  • Special note: Repledged securities release for pay-in must be requested one day prior, not on pay-in date
  • Changes supersede previous circular 0119/2025 dated April 29, 2025

Regulatory Changes

Collateral Addition Timings:

  • Cash and Fixed Deposit Receipt deposit cut-off: 7:30 PM on all settlement days

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 (Immediate release)
  • Batch 2: 9:30 AM cut-off (Immediate release)
  • Batch 3: 10:00 AM cut-off (Immediate release)
  • Batch 4: 12:00 PM cut-off (Immediate release)
  • Batch 5: 2:00 PM cut-off (Immediate release)
  • Batch 6: 3:00 PM cut-off (Immediate release)
  • Batch 7: 4:00 PM cut-off (Immediate release)
  • Batch 8: 5:00 PM cut-off (Immediate release)
  • Batch 9: 6:00 PM cut-off (Immediate release)
  • Batch 10: 7:00 PM cut-off (Immediate release)
  • Additional window: 8:00 PM cut-off (Immediate/EOD release)

Compliance Requirements

For All Members/Custodians/PCM:

  • Ensure collateral addition requests for cash and FDR are submitted before 7:30 PM on settlement days
  • Plan collateral release requests according to the new batch timings
  • Update internal systems and processes to align with revised cut-off times

Critical Requirement for Repledged Securities:

  • Clearing members must request release of repledged securities towards pay-in requirement one day prior to pay-in date
  • Such requests should NOT be made on the actual pay-in date

Contact Information:

Important Dates

  • Circular Issue Date: January 16, 2026
  • Effective Date: January 19, 2026
  • Supersedes: Circular ref. no. 0119/2025 (NCL/CMPT/67751) dated April 29, 2025

Impact Assessment

Operational Impact:

  • Members gain increased flexibility with extended deposit timings until 7:30 PM for cash and FDR
  • 10 batches for pledged securities release throughout the day allows better intraday collateral management
  • Extended release request cut-off to 8:00 PM provides additional time for end-of-day operations

Member Benefits:

  • More granular control over collateral release timing throughout trading hours
  • Reduced pressure on end-of-day collateral operations
  • Better liquidity management with multiple release windows

Process Changes Required:

  • Members need to update collateral management systems and workflows
  • Treasury and risk management teams must adjust to new batch timings
  • Enhanced planning required for repledged securities to meet the one-day-prior requirement

Risk Considerations:

  • Proper understanding of batch timings is essential to avoid missed cut-offs
  • The one-day-prior requirement for repledged securities requires advance planning
  • Failure to adhere to timings may result in collateral not being available when needed

Impact Justification

Operational change affecting collateral management timings for all clearing members and custodians, providing more flexibility but requiring process adjustments