Description

NSE Clearing updates the list of ETFs eligible for cross margining with effect from January 28, 2026, expanding coverage across various index-tracking funds.

Summary

NSE Clearing Limited has issued a revised list of Exchange Traded Funds (ETFs) eligible for cross margining benefits, effective from January 28, 2026. This circular supersedes the previous list issued on December 29, 2025 (circular no. 0413/2025). The updated list includes 66 ETFs covering various indices including Nifty 50, Bank Nifty, sectoral indices, and thematic funds from multiple asset management companies including Nippon India, ICICI Prudential, SBI, Kotak, HDFC, Mirae Asset, and others.

Key Points

  • Revised list of cross margin eligible ETFs effective from January 28, 2026
  • Total of 66 ETFs included across various index categories
  • ETFs cover Nifty 50, Bank Nifty, Nifty Next 50, sectoral indices (IT, Pharma, Infrastructure), and thematic funds
  • Minimum quantity requirements specified for each ETF ranging from 500 to 65,000 units
  • Fund houses covered include Nippon India, ICICI Prudential, SBI, Kotak Mahindra, HDFC, Mirae Asset, Aditya Birla Sun Life, Axis, DSP, Motilal Oswal, Quantum, Tata, LIC MF, and UTI
  • Cross margining allows offset benefits between cash and derivatives positions in eligible ETFs

Regulatory Changes

This circular updates the framework for cross margining in ETFs by revising the list of eligible securities. Cross margining enables members to optimize margin requirements by offsetting positions across cash and derivative segments for the same underlying index through eligible ETFs.

Compliance Requirements

  • All members must note the revised list of eligible ETFs for cross margin calculations
  • Members must ensure minimum quantity requirements are met for cross margin benefits
  • The revised list supersedes all previous communications on this subject
  • Members should update their systems and risk management frameworks accordingly

Important Dates

  • Circular Date: January 23, 2026
  • Effective Date: January 28, 2026
  • Reference Circular: 0413/2025 dated December 29, 2025

Impact Assessment

This revision impacts trading members utilizing cross margin benefits in the capital market segment. The updated list provides clarity on eligible ETFs and their minimum quantity requirements, enabling better margin optimization strategies. Members holding or trading these ETFs can benefit from reduced margin requirements when maintaining offsetting positions across cash and derivatives segments. The expansion or modification of the eligible ETF list affects portfolio margining calculations and liquidity management for institutional participants and proprietary trading desks.

Impact Justification

Updates cross margin eligibility for ETFs, affecting margin optimization opportunities for members trading these securities. Medium impact as it applies to specific ETF universe and cross-margining participants.