Description

NSE Clearing updates the list of ETFs eligible for cross margining in futures and options segment, effective January 28, 2026.

Summary

NSE Clearing Limited has issued a revised list of Exchange Traded Funds (ETFs) eligible for cross margining in the Futures & Options segment. This circular updates the previous list issued on December 29, 2025, and includes 72 ETFs from various asset management companies including Nippon India, ICICI Prudential, SBI, Kotak Mahindra, HDFC, Mirae Asset, Aditya Birla Sun Life, Axis, and LIC Mutual Funds. The revised list becomes effective from January 28, 2026.

Key Points

  • 72 ETFs are eligible for cross margin benefits in F&O segment
  • Includes ETFs tracking Nifty 50, Bank Nifty, sectoral indices (IT, Pharma, PSU Banks, Infrastructure, BFSI, Healthcare, Tech)
  • Includes mid-cap and theme-based ETFs (Nifty Next 50, Nifty Midcap 50/150, Nifty 100, Junior Bees, Value 20, Dividend Opportunities)
  • Each ETF has specific minimum quantity requirements ranging from 500 to 65,000 units
  • Cross margining allows margin benefit on offsetting positions between cash and derivatives segments
  • Replaces previous list dated December 29, 2025 (Circular 0172/2025)

Regulatory Changes

This circular revises the list of ETFs eligible for cross margining as per NSE Clearing’s risk management framework. Cross margining is a facility that provides margin offset benefits to members having positions in both cash (ETF holdings) and derivatives (index futures/options) segments. The revision ensures alignment with current market conditions and ETF liquidity parameters.

Compliance Requirements

  • Trading and clearing members must ensure positions meet minimum quantity requirements specified for each ETF
  • Members utilizing cross margin benefits must hold ETF positions in multiples of the specified minimum quantities
  • Members should update their risk management systems to reflect the revised eligible ETF list
  • Positions must be maintained in demat form for availing cross margin benefits

Important Dates

  • Circular Date: January 23, 2026
  • Effective Date: January 28, 2026
  • Reference Circular: 0172/2025 dated December 29, 2025 (Download Reference No: NCL/CMPT/72053)

Impact Assessment

Market Impact: Medium - affects F&O participants who utilize cross margining strategies with ETF holdings. The revised list provides clarity on eligible instruments for margin optimization.

Operational Impact: Members using cross margining facilities need to verify their ETF holdings against the updated list and ensure compliance with minimum quantity requirements. This may require adjustment of positions for members holding ETFs no longer on the eligible list (if any were removed) or those wanting to utilize newly added ETFs.

Trading Strategy Impact: The comprehensive list covering major index and sectoral ETFs provides flexibility for traders to implement hedging and arbitrage strategies while optimizing margin utilization across cash and derivatives segments.

Impact Justification

Updates cross margin eligibility for 72 ETFs affecting F&O participants' margin requirements and trading strategies. Operational impact on members utilizing cross margining benefits.