Description

NSE updates the list of approved securities (Sovereign Gold Bonds, G-Sec, T-Bills) and banks accepted as collateral forming part of cash component of liquid assets in the debt segment.

Summary

NSE has issued a revised list of approved securities and banks accepted as collateral for the cash component of liquid assets in the debt segment. The circular provides updated Annexures covering Sovereign Gold Bonds (SGBs), Government Securities (G-Sec), Treasury Bills (T-Bills), and approved banks. All SGB/G-Sec/T-Bills issued by RBI during the month are accepted from the date of issue.

Key Points

  • Updated Annexure 1 lists over 42 Sovereign Gold Bond (SGB) series eligible as collateral with a uniform 10% haircut (0.10) applied to all listed SGBs
  • All SGB/G-Sec/T-Bills issued by RBI during the current month are automatically accepted as collateral from their date of issue
  • SGBs listed span series from 2018-19 through 2023-24, with maturities ranging from 2026 to 2031
  • Annexure 2 and 3 cover additional approved debt securities and banks (details in full xlsx file)
  • Applicable haircut for all listed SGBs is uniformly set at 10%

Regulatory Changes

This is a periodic revision to the approved securities list. No fundamental policy changes are indicated; the update reflects additions or removals from the eligible collateral pool in line with current RBI issuances and NSE risk management framework.

Compliance Requirements

  • Trading members and clearing members in the debt segment must update their collateral management systems to reflect the revised approved securities list
  • Only securities listed in the current circular’s Annexures are eligible for submission as collateral forming the cash component of liquid assets
  • Members must apply the specified haircuts when computing collateral value

Important Dates

  • Effective Date: 2026-03-20 (date of circular issuance)
  • New RBI-issued SGB/G-Sec/T-Bills in March 2026 are accepted from their respective issue dates

Impact Assessment

This circular has a moderate operational impact on debt segment clearing members and trading members who use SGBs, G-Secs, or T-Bills as collateral. The uniform 10% haircut across all listed SGB series provides predictability for margin calculations. Members holding SGB series not included in the revised list must substitute collateral accordingly. The inclusion of series up to 2023-24 issuances (e.g., SGBDE31III, SGBJUN31I, SGBSEP31II) expands the eligible collateral pool for newer SGB holders.

Impact Justification

Routine periodic update to the approved collateral securities list for debt segment participants. Affects margin and collateral management for trading members but does not represent a policy change.