Description

Updated list of equity shares approved as non-cash component of liquid assets for SLB segment with applicable haircuts and quantity limits.

Summary

NSE has issued a revised list of approved equity securities that can be deposited as non-cash component of liquid assets for the Securities Lending and Borrowing (SLB) segment. The circular specifies 40+ approved securities with VAR-based haircuts and quantity restrictions. Members can deposit each security subject to a maximum of 25% of total margins, with specific overall permitted quantities defined across all segments.

Key Points

  • Approved securities are subject to VAR (Value at Risk) based haircut calculations
  • Maximum deposit limit per security is 25% of total margins
  • List includes major blue-chip stocks across banking, energy, manufacturing, technology, and consumer goods sectors
  • Overall permitted quantities are specified for each security across all segments
  • Securities are not available for memberwise permitted quantity in SLB segment (marked as N.A)
  • The circular provides annexures with detailed security information including Symbol, ISIN, Security Name, and quantity limits

Regulatory Changes

This is a routine revision of the approved securities list for SLB operations. The framework maintains the existing structure where:

  • VAR-based haircuts apply to all listed securities
  • 25% concentration limit per security remains in effect
  • Overall permitted quantities are updated based on market conditions and liquidity considerations

Compliance Requirements

  • Members must ensure deposits of approved securities do not exceed 25% of total margins for any single security
  • Only securities listed in the annexure can be deposited as non-cash collateral for SLB segment
  • Members must apply appropriate VAR-based haircuts when calculating collateral value
  • Adherence to overall permitted quantity limits across all segments is mandatory

Important Dates

Circular issued: January 21, 2026 Effective date: Not explicitly specified, typically effective immediately unless stated otherwise

Impact Assessment

Market Impact: Medium - affects liquidity management and collateral strategies for SLB participants

Operational Impact: Members participating in Securities Lending and Borrowing must update their collateral management systems with the revised list and quantity limits. The broad range of approved securities (40+ stocks) provides flexibility for collateral management while maintaining risk controls through VAR haircuts and concentration limits.

Participant Benefits: The inclusion of major liquid stocks across diverse sectors allows members to optimize their collateral usage while maintaining portfolio diversification.

Impact Justification

Regular operational update affecting members participating in SLB segment. Impacts collateral management and margin requirements for approved securities with specific quantity limits.