Description

Updated list of equity shares eligible as non-cash component of liquid assets for margin requirements, with applicable haircuts and quantity limits.

Summary

NSE has released a revised list of equity shares that qualify as the non-cash component of liquid assets for margin requirements. The circular specifies 40 approved securities with their respective symbols, ISINs, and overall permitted quantities across all segments. Each security is subject to VAR (Value at Risk) based haircut, and members can deposit each security up to a maximum of 25% of total margins.

Key Points

  • 40 equity shares approved as non-cash component of liquid assets
  • VAR-based haircut applicable to all listed securities
  • Maximum deposit limit: 25% of total margins per security per member
  • Overall permitted quantities specified for each security across all segments
  • Memberwise permitted quantity for COM segment listed as N.A for all securities
  • Includes major blue-chip stocks from diverse sectors including banking, technology, automobiles, energy, and FMCG

Approved Securities

The list includes major companies such as:

  • Banking & Financial Services: HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, SBI, Bajaj Finance, Bajaj Finserv, Shriram Finance, Jio Financial Services
  • Technology: Infosys, HCL Technologies
  • Energy & Infrastructure: Reliance Industries, ONGC, NTPC, Power Grid, Coal India, Adani Ports, Adani Enterprises
  • Automobiles: Maruti Suzuki, Mahindra & Mahindra, Bajaj Auto, Eicher Motors
  • FMCG & Consumer: ITC, Hindustan Unilever, Asian Paints, Nestle India
  • Healthcare: Apollo Hospitals, Max Healthcare, Dr. Reddy’s, Cipla
  • Insurance: HDFC Life, SBI Life
  • Others: Larsen & Toubro, JSW Steel, Grasim Industries, Hindalco, BEL, InterGlobe Aviation, Eternal Limited

Compliance Requirements

  • Trading members must adhere to the 25% cap per security when depositing equity shares as margin collateral
  • VAR-based haircut must be applied to the market value of deposited securities
  • Overall permitted quantities across all segments must not be exceeded
  • Members should ensure deposited securities are from the approved list only

Important Dates

No specific effective date or deadline mentioned in the provided content. This appears to be an ongoing revision to the approved securities list.

Impact Assessment

Market Impact: Medium - The list includes highly liquid large-cap stocks, providing trading members with diverse options for margin collateral while maintaining risk management through VAR-based haircuts.

Operational Impact: Trading members can utilize these 40 securities as margin deposits, subject to quantity caps and haircut requirements. The 25% limit per security encourages diversification of collateral portfolios.

Risk Management: VAR-based haircuts ensure dynamic risk adjustment based on market volatility, protecting the exchange and clearing corporation from collateral value erosion.

Impact Justification

Regular update to approved securities list affecting margin collateral eligibility; impacts trading members' ability to use specific equities as margin deposits with VAR-based haircuts and quantity restrictions.