Description

NSE updates the list of approved equity shares and banks forming part of the non-cash component of liquid assets for the Currency Derivatives segment, effective from the next trading day.

Summary

NSE has issued a revised list of approved equity shares and banks that are eligible to form part of the non-cash component of liquid assets for the Currency Derivatives (CD) segment. The applicable haircut for listed securities is Value at Risk (VAR)-based. A prudential norm applies: exclusion of any pledged security must not result in a margin shortfall exceeding 25% at a Clearing Member level.

Key Points

  • Approved equity shares list (Annexure 1 & 2) covers 39+ large-cap NSE-listed securities eligible as non-cash liquid assets in the CD segment.
  • Haircut applicable to all listed securities is VAR-based.
  • Value-based prudential norm: pledged security exclusion must not cause margin shortfall of more than 25% at a Clearing Member level.
  • Overall Permitted Quantity and Memberwise Permitted Quantity for CD Segment are specified per security.
  • Memberwise Permitted Qty for CD Segment is listed as N.A. for Annexure 1 & 2 securities.
  • The circular covers multiple annexures (1 through 5) including approved banks and other collateral categories.

Regulatory Changes

This is a periodic revision to the approved securities and banks list for the CD segment. The update reflects changes in permitted quantities for existing approved securities and may include additions or removals from the eligible list.

Compliance Requirements

  • Clearing Members must ensure that non-cash collateral pledged in the CD segment consists only of securities from the revised approved list.
  • Clearing Members must adhere to the overall permitted quantity limits per security as specified in the annexures.
  • Pledging of securities must not result in a margin shortfall exceeding 25% at the Clearing Member level upon exclusion of any single pledged security.

Important Dates

  • Circular Date: 2026-03-20
  • Effective Date: Next trading day following issuance (typically immediate effect for revised lists).

Impact Assessment

This circular impacts Clearing Members in the Currency Derivatives segment who use equity shares as non-cash components of liquid assets. Members holding or planning to pledge securities not on the revised list must adjust their collateral composition accordingly. The large-cap, high-liquidity nature of approved securities (e.g., HDFCBANK, RELIANCE, ICICIBANK, ITC) limits operational disruption. Members should review permitted quantity limits to ensure compliance, particularly for securities with large overall permitted quantities such as ITC (2.5B), HDFCBANK (2.66B), and ETERNAL (1.82B).

Impact Justification

Routine periodic update to the approved securities list for CD segment liquid assets. Affects clearing members using equity shares as non-cash collateral but does not introduce new policy changes.