Description

Updated list of Sovereign Gold Bonds (SGBs) approved as collateral for the cash component of liquid assets with 10% haircut applicable to all listed securities.

Summary

NSE has issued a revised list of approved securities acceptable as collateral for the cash component of liquid assets. The circular specifically lists 42 Sovereign Gold Bonds (SGBs) issued between 2019-2023 with maturity dates ranging from 2026 to 2031. All listed SGBs carry a uniform haircut of 10% (0.1) when used as collateral. The circular notes that all SGB/G-Sec/T-Bills issued by RBI during the month shall be accepted from the date of issue.

Key Points

  • 42 Sovereign Gold Bonds approved as collateral for liquid assets
  • All SGBs have maturity dates between 2026 and 2031
  • Uniform haircut of 10% applicable to all listed Sovereign Gold Bonds
  • Coupon rate of 2.50% across all listed SGBs
  • SGBs issued across multiple series from 2019-20 to 2023-24
  • New SGB/G-Sec/T-Bills issued by RBI are automatically accepted from date of issue
  • Each SGB has unique ISIN and trading symbol for identification

Regulatory Changes

This is a routine update to the approved securities list. No new regulatory framework or policy changes are introduced. The circular maintains existing collateral acceptance norms for Sovereign Gold Bonds.

Compliance Requirements

  • Market participants must apply 10% haircut when accepting listed SGBs as collateral
  • Only SGBs with ISINs listed in Annexure 1 are approved for collateral purposes
  • Members must ensure proper identification using ISIN codes provided
  • Automatic acceptance of new RBI-issued SGBs/G-Secs/T-Bills from issue date

Important Dates

  • Circular Date: January 21, 2026
  • Effective Date: Immediate
  • SGB Maturity Range: 2026-2031 (various securities)
  • Notable upcoming maturities: SGBMAY26 (earliest listed maturity)

Impact Assessment

Market Impact: Minimal. This is a standard administrative update maintaining existing collateral framework.

Operational Impact: Low. Members continue using approved SGBs as collateral with established 10% haircut parameter.

Liquidity Impact: Neutral. The list provides clarity on acceptable collateral instruments, supporting smooth collateral management operations.

Member Action Required: Review updated list and ensure internal systems reflect current approved securities and applicable haircuts.

Impact Justification

Routine administrative update listing approved Sovereign Gold Bonds as collateral with standard 10% haircut; no policy changes or new requirements affecting market participants