Description

NSE has revised the list of approved equity shares forming part of non-cash liquid assets for the Commodity (COMM) segment, with applicable VAR-based haircuts and prudential norms.

Summary

NSE has issued a revised list of equity shares approved as non-cash components of liquid assets for the Commodity (COMM) segment. The list covers 39 large-cap securities with overall permitted quantities across all segments. A VAR-based haircut is applicable for all listed securities, and a value-based prudential norm applies such that the exclusion of any pledged security must not result in a margin shortfall exceeding 25% at the Clearing Member level.

Key Points

  • 39 equity shares are approved as non-cash liquid assets for the Commodity segment
  • Applicable haircut for all securities is VAR (Value at Risk)
  • Prudential norm: exclusion of a pledged security must not cause margin shortfall of more than 25% at Clearing Member level
  • Memberwise permitted quantity for the COMM segment is listed as N.A. for all securities, meaning segment-specific caps do not apply separately
  • Overall permitted quantities vary significantly across securities, from ~20.7 million (APOLLOHOSP) to ~2.67 billion (HDFCBANK)

Regulatory Changes

This circular supersedes the previous approved securities list for the Commodity segment. The updated list reflects current Nifty 50 constituents and large-cap securities eligible for margin collateral purposes. ETERNAL LIMITED (INE758T01015) appears as a notable inclusion with the highest overall permitted quantity of ~1.82 billion shares.

Compliance Requirements

  • Clearing Members must ensure their pledged securities for non-cash liquid assets are drawn only from the approved list
  • Clearing Members must monitor that removal of any single pledged security does not cause a margin shortfall exceeding 25% at their level
  • Clearing Members should update their collateral management systems to reflect the revised permitted quantities

Important Dates

  • Circular date: 2026-03-20
  • Effectiveness: As communicated by NSE; Clearing Members should treat this list as operative immediately upon issuance

Impact Assessment

This is a routine operational update affecting Clearing Members participating in the Commodity segment. The revision ensures the approved securities list remains aligned with current market conditions and eligible large-cap equities. The N.A. memberwise permitted quantities for COMM segment indicate no separate segment-level caps, giving Clearing Members flexibility within the overall permitted limits. The inclusion of high-liquidity Nifty 50 stocks ensures adequate collateral availability for members.

Impact Justification

Operational update for clearing members in the commodity segment specifying eligible securities for non-cash margin collateral with permitted quantities; affects collateral management but not trading restrictions.