Description

NSE Clearing Limited updates the approved list of equity shares, ETFs, mutual funds, corporate bonds, GOI securities, and empaneled banks for collateral purposes in the Commodity Derivatives Segment, effective March 2026.

Summary

NSE Clearing Limited (NCL) has issued a revised list of approved securities and banks for the Commodity Derivatives Segment, effective for March 2026. This circular supersedes the previous circular no. 0035/2025 dated January 21, 2026, and provides updated annexures covering equity shares, ETFs, mutual funds, GOI securities, corporate bonds, and empaneled banks for BG/FDR issuance.

Key Points

  • Seven annexures detail the approved collateral categories with applicable haircut rates and market/member-specific limits
  • Annexure 1: Equity shares forming non-cash component of liquid assets (includes major index stocks such as Adani Enterprises, Adani Ports, Apollo Hospitals, Asian Paints, Axis Bank, Bajaj Auto, Bajaj Finserv, Bajaj Finance, BEL, Bharti Airtel, Cipla, and others)
  • 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 of liquid assets
  • Annexure 7: Banks empaneled for issuance of Bank Guarantees (BGs) and Fixed Deposit Receipts (FDRs)
  • Equity shares are subject to VAR-based haircuts
  • Value-based prudential norm: exclusion of a pledged security must not result in margin shortfall exceeding 25% at Clearing Member level

Regulatory Changes

  • Updated approved securities list replaces the January 21, 2026 circular (Ref No: NCL/COM/72434 / Circular 0035/2025)
  • Market-wide applicable limits and member-specific limits have been revised for each security category
  • Haircut rates are updated per the new annexures

Compliance Requirements

  • Clearing Members must ensure collateral submissions align with the updated approved securities list effective March 2026
  • Members who are banks must not reckon G-Sec provided as collateral for their SLR (Statutory Liquidity Ratio) requirements, and such G-Sec must not be used for trading
  • Members must release G-Sec/T-Bills at least two days before maturity, as these instruments carry a shut period of two days
  • Members should review member-specific permitted quantities for the Commodity Derivatives Segment as stipulated in the annexures

Important Dates

  • Circular Date: February 20, 2026
  • Effective Period: March 2026
  • Reference Circular superseded: NCL/COM/72434 dated January 21, 2026

Impact Assessment

This is a routine monthly update impacting all clearing members, custodians, and PCMs (Professional Clearing Members) in the Commodity Derivatives Segment. Members managing collateral portfolios must update their eligible securities lists to reflect the new annexures. The two-day G-Sec shut period requirement demands proactive collateral management. Equity collateral remains subject to VAR-based haircuts with prudential concentration limits capping margin shortfall risk at 25% per clearing member. No extraordinary changes are indicated; operational impact is moderate and primarily affects back-office collateral management teams.

Impact Justification

Routine monthly update to approved collateral securities list affecting clearing members in the commodity derivatives segment. Impacts margin and collateral management but is a standard operational circular.