Description

NSE Clearing Limited revises the list of approved securities, GOI securities, open-ended mutual funds, corporate bonds, and empaneled banks acceptable as collateral for liquid assets, effective March 2026.

Summary

NSE Clearing Limited (NCL) has issued a revised list of approved securities and banks acceptable as collateral for liquid assets, effective for March 2026. This circular (Ref. No. 0078/2026) supersedes the previous circular no. 0034/2026 dated January 21, 2026. The revision covers equity shares, ETFs, Sovereign Gold Bonds, GOI securities, open-ended mutual funds, corporate bonds, and empaneled banks for BGs and FDRs.

Key Points

  • Revised list covers seven annexures detailing approved collateral categories with applicable haircut rates and market-wide/member-specific limits.
  • Annexure 1: Equity shares (non-cash component) — haircut based on VAR; value-based prudential norm limits pledged security exclusion to no more than 25% margin shortfall at Clearing Member level.
  • Annexure 2: ETFs as non-cash component of liquid assets.
  • Annexure 3: ETFs as cash component of liquid assets.
  • Annexure 4: Sovereign Gold Bonds and GOI Securities (G-Sec)/T-Bills as cash component.
  • Annexure 5: Open-ended mutual funds acceptable as collateral with market-wide limits.
  • Annexure 6: Corporate bonds as non-cash component with market-wide limits.
  • Annexure 7: List of banks empaneled for issuance of Bank Guarantees (BGs) and Fixed Deposit Receipts (FDRs).
  • G-Sec/T-Bills carry a shut period of two days; members must release them at least two days before maturity.
  • Member-banks must ensure G-Sec provided as collateral is not reckoned for SLR purposes and not used for trading.

Regulatory Changes

This is a routine monthly update to the approved collateral list. No new regulatory framework changes are introduced. The revision updates market-wide applicable limits, member security-specific limits, and haircut rates across all collateral categories in line with current market conditions.

Compliance Requirements

  • All Members, Custodians, and Primary Clearing Members (PCMs) must update their collateral portfolios to reflect the revised approved securities list for March 2026.
  • Members holding G-Sec/T-Bills as collateral must release them at least two days before maturity to account for the two-day shut period.
  • Member-banks providing G-Sec as collateral must not count such securities towards their Statutory Liquidity Ratio (SLR) requirements and must not use them for trading purposes.
  • Members must ensure pledged securities comply with the value-based prudential norm: exclusion of a pledged security must not result in a margin shortfall exceeding 25% at the Clearing Member level.

Important Dates

  • Circular Date: February 20, 2026
  • Effective Date: March 2026
  • Supersedes: Circular No. 0034/2026 (NCL/CMPT/72430) dated January 21, 2026

Impact Assessment

This circular has a moderate operational impact on clearing members, custodians, and PCMs who manage collateral portfolios. Members will need to review and potentially rebalance their collateral holdings to align with the updated approved securities list and revised haircut/limit parameters. The inclusion of a broad range of equity shares (Nifty 50 constituents and other large-caps), ETFs, mutual funds, and corporate bonds provides flexibility in collateral management. No immediate trading restrictions are introduced; impact is limited to back-office collateral and margin management operations.

Impact Justification

Routine monthly revision of approved collateral securities and haircut rates affecting clearing members and custodians managing margin obligations; effective March 2026. Impacts collateral management but does not introduce new regulatory changes.