Description

NSE Clearing discontinues separate pool and early pay-in accounts for Securities Lending and Borrowing Scheme (SLBS) in CDSL, requiring participants to use cash segment accounts instead.

Summary

NSE Clearing Limited has announced the discontinuation of separate clearing member pool accounts and early pay-in (EPI) accounts in CDSL specifically for Securities Lending and Borrowing Scheme (SLBS). From trade date February 13, 2026 (settlement date February 16, 2026), all SLBS participants and custodians must use their existing cash segment pool and early pay-in accounts (Exchange ID NSE, Exchange ID 12, CC ID 11) for all SLBS transactions. This change consolidates SLBS settlements with cash segment operations in CDSL.

Key Points

  • Separate SLBS pool accounts (Exchange ID NSESLB, Exchange ID 24, CC ID 23) will be discontinued
  • Participants must use cash segment accounts (Exchange ID NSE, Exchange ID 12, CC ID 11) for SLBS transactions
  • All SLBS participants must maintain active clearing member pool and early pay-in accounts in CDSL for cash segment
  • Preferred depository for SLBS pay-out will be as opted by member in cash segment
  • Migration affects three SLB market types: 41 (SLB Lend), 42 (SLB Lend Return), and 44 (SLB Lend Return Auction)
  • CDSL is migrating these market types from NCL CCID-23 to NCL CCID-11
  • Existing SLB pool and EPI accounts will be used only until settlement of February 13, 2026
  • Existing early pay-in process for SLB Lend return continues as per procedure in point 10 of part C of consolidated circular CMPT67763

Regulatory Changes

NSE Clearing Limited is consolidating the account structure for Securities Lending and Borrowing operations with cash segment operations. This eliminates the requirement to maintain separate CDSL accounts specifically for SLBS activities. The change aligns SLBS settlement infrastructure with the broader cash market settlement framework, using NCL CCID-11 with NSE EXID-12 instead of the previous NCL CCID-23 with NSE EXID-24.

Compliance Requirements

  • All SLBS Participants and Custodians must:
    • Ensure active clearing member pool account exists in CDSL for cash segment (Exchange ID NSE, Exchange ID 12, CC ID 11)
    • Ensure active early pay-in account exists in CDSL for cash segment
    • Verify account details by calling toll-free number 18002660050 (IVR Option 2)
    • Confirm preferred depository settings in cash segment, which will apply to SLBS
    • Discontinue use of separate SLBS pool and EPI accounts after February 13, 2026 settlements
    • Update internal systems and processes to reflect new account mappings
    • Train operations staff on the new settlement procedures

Important Dates

  • January 20, 2026: Circular issued
  • February 13, 2026: Trade date from which new account structure becomes effective
  • February 16, 2026: Settlement date from which new process applies
  • Settlement Numbers Affected:
    • SLB Lend (Market Type 41): Settlement 2026031 onwards
    • SLB Lend Return (Market Type 42): Settlement 2026503/2026730 onwards
    • SLB Lend Return Auction (Market Type 44): Settlement 2026504/2026730 onwards
  • Last date for old accounts: Settlements up to February 13, 2026 will use existing SLBS pool and EPI accounts

Impact Assessment

Operational Impact:

  • High impact on all participants engaged in Securities Lending and Borrowing activities
  • Requires operational changes to settlement processes and account management
  • Participants must verify and confirm cash segment account details before cutover date
  • Systems and internal procedures need updates to reflect new account mappings
  • Risk of settlement failures if participants do not ensure proper cash segment account activation

Process Efficiency:

  • Simplifies account management by consolidating SLBS and cash segment operations
  • Reduces duplicate account maintenance requirements
  • Streamlines settlement infrastructure across market types

Risk Considerations:

  • Participants without active cash segment accounts will be unable to settle SLBS transactions
  • Transition period requires careful coordination to avoid disruption
  • Members should proactively verify account status well before February 13, 2026

Market Segment Affected:

  • All participants and custodians in Securities Lending and Borrowing Scheme
  • Trading members and clearing members of NSE conducting SLB operations
  • Depository participants processing SLB settlements through CDSL

Impact Justification

Critical operational change affecting all SLBS participants requiring mandatory account migration and new procedures for settlements starting February 13, 2026