Description

NSE revises the list of equity shares approved as non-cash component of liquid assets for the Capital Market segment, listing 39 securities with overall permitted quantities and applicable haircut norms.

Summary

NSE has issued a revised list of equity shares approved as the non-cash component of liquid assets for the Capital Market (CM) segment. The circular specifies 39 securities eligible for this purpose, along with their overall permitted quantities across all segments and member-wise permitted quantities for the CM segment. The applicable haircut is VAR-based, and a prudential norm applies such that exclusion of a 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 component of liquid assets for the CM segment
  • Applicable haircut for all listed securities is VAR (Value at Risk)-based
  • Value-based prudential norm: exclusion of a pledged security must not result in a margin shortfall of more than 25% at the Clearing Member level
  • Member-wise permitted quantity for the CM segment is listed as N.A. for all securities
  • All listed securities are Nifty 50 large-cap constituents with high liquidity

Regulatory Changes

This circular supersedes the previous approved securities list for non-cash liquid assets in the CM segment. ETERNAL LIMITED (INE758T01015) appears in the list, reflecting updated index/eligibility composition.

Compliance Requirements

  • Clearing Members must ensure that pledged securities used as non-cash liquid assets are drawn from the revised approved list
  • Clearing Members must adhere to the overall permitted quantity limits specified for each security across all segments
  • Clearing Members must ensure compliance with the 25% prudential norm: pledging or exclusion of any single security should not cause a margin shortfall exceeding 25% at the Clearing Member level

Important Dates

  • Circular date: 2026-03-20
  • Effective date: As specified by NSE (typically immediate or next trading day upon issuance)

Impact Assessment

This revision affects Clearing Members who use equity shares as collateral for margin obligations in the CM segment. The list covers 39 blue-chip securities, ensuring high-quality, liquid collateral is used for non-cash margin purposes. The VAR-based haircut methodology and the 25% prudential cap limit concentration risk. Members holding or pledging securities not on this revised list must review and adjust their collateral portfolios accordingly. The inclusion of ETERNAL LIMITED and the specified permitted quantities reflect current market conditions and liquidity assessments.

Impact Justification

Routine periodic revision of approved securities list for non-cash liquid assets affecting clearing members' margin composition; impacts 39 large-cap stocks used as collateral in CM segment.