Description

NSE Clearing Limited revises the list of approved securities, GOI securities, open-ended mutual funds, and empaneled banks for collateral purposes in the Currency Derivatives Segment, effective March 2026.

Summary

NSE Clearing Limited (NCL) has issued a revised list of approved securities and empaneled banks for the Currency Derivatives Segment, effective for the month of March 2026. This circular (Ref. No. 009/2026) supersedes the earlier circular no. 005/2026 dated January 21, 2026, and covers equity shares, ETFs, Sovereign Gold Bonds, GOI Securities/T-Bills, open-ended mutual funds, and banks approved for issuance of Bank Guarantees (BGs) and Fixed Deposit Receipts (FDRs).

Key Points

  • Revised approved securities list covers five annexures: equity shares (non-cash liquid assets), ETFs (cash component), Sovereign Gold Bonds and GOI/T-Bills, open-ended mutual funds, and empaneled banks.
  • Applicable haircut for listed equity shares is VAR (Value at Risk)-based.
  • Value-based prudential norm applies: exclusion of a pledged security must not result in margin shortfall exceeding 25% at the Clearing Member level.
  • G-Sec/T-Bills carry a two-day shut period; members must release these instruments at least two days before maturity.
  • Members who are also banks must not reckon G-Sec provided as collateral for SLR (Statutory Liquidity Ratio) purposes or use them for trading.
  • Equity shares included in Annexure 1 include major index constituents such as ADANIENT, ADANIPORTS, AXISBANK, BAJFINANCE, BHARTIARTL, and others with market-wide and member-specific permitted quantity limits.

Regulatory Changes

This is a routine monthly revision of the approved collateral securities list. No structural regulatory changes are introduced. The update reflects current market-wide applicable limits, member security-specific limits, and haircut rates for all accepted collateral categories in the Currency Derivatives Segment.

Compliance Requirements

  • All Members, Custodians, and Primary Clearing Members (PCMs) of the Currency Derivatives Segment must adhere to the revised approved securities and bank lists when submitting collaterals.
  • Members must ensure G-Sec/T-Bills are released at least two days before maturity due to the two-day shut period.
  • Bank members must not use G-Sec collaterals for SLR computation or trading purposes.
  • Collateral submissions must comply with market-wide limits, member-specific limits, and applicable haircut rates as detailed in Annexures 1–5.

Important Dates

  • Circular Date: February 20, 2026
  • Effective Period: March 2026
  • Supersedes: Circular no. 005/2026 (NCL/CD/72432) dated January 21, 2026

Impact Assessment

This circular has a moderate operational impact on clearing members and custodians in the Currency Derivatives Segment. Members must update their collateral management systems to reflect the revised approved securities list, updated haircut rates, and permitted quantity limits for March 2026. The inclusion of major large-cap equities (e.g., AXISBANK, BAJFINANCE, BHARTIARTL) as eligible non-cash collateral provides clearing members with broad collateral options. No securities appear to have been abruptly removed based on available data, suggesting a stable collateral framework. Contact for queries: collaterals_ops@nsccl.co.in or 1800 266 0050 (IVR option 2).

Impact Justification

Routine monthly revision of approved collateral securities and banks for Currency Derivatives Segment. Affects clearing members' margin and collateral management but represents a standard operational update rather than a structural regulatory change.