Description

NSE Clearing Ltd. introduces a facility for Custodians to disseminate information on inactive Custodial Participant (CP) codes, with a consolidated file made available to trading members by 8:00 PM daily. The facility goes live from March 27, 2026.

Summary

NSE Clearing Limited (NCL) is introducing a facility for Custodians to upload and disseminate information about inactive Custodial Participant (CP) codes — those for which clearing and settlement activities will not be performed by Custodians. A consolidated list of inactive CP codes from all custodians will be made available to trading members as a daily file by 8:00 PM. The facility becomes available from March 27, 2026.

Key Points

  • NSE Clearing will provide a daily file CM_InactiveCP_ddmmyyyy.csv listing all inactive CP codes by 8:00 PM
  • Custodians can upload inactive CP code information via the N-MASS application between 9:00 AM and 7:00 PM on working days
  • File upload is accessible via: N-MASS → Online CP → INACTIVE CP → FILE UPLOAD
  • Custodians must assign the INACTIVE CP role for FILE UPLOAD and FILE DOWNLOAD services through ROLE MANAGEMENT, with ‘Write’ access
  • Upload file naming convention: CM_InactiveCP_DDMMYYYY_nn.csv (nn = incremental batch number starting at 01)
  • Response files are generated per batch: suffix ‘S’ for fully successful, ‘R’ if any/all records are rejected
  • The consolidated file for trading members is placed at: Extranet/Common/clearing folder

Regulatory Changes

  • New operational facility introduced under NCL Circular Ref. No: 0114/2026
  • Custodians now have a formal channel to flag CP codes as inactive for clearing and settlement purposes
  • The latest successfully uploaded file from each custodian will be treated as the final record for inactive CP codes

Compliance Requirements

  • Custodians must:
    • Configure ROLE MANAGEMENT in N-MASS to enable INACTIVE CP access with ‘Write’ permissions
    • Submit all inactive CP codes in a single file; any modification, addition, or deletion requires re-uploading the complete file
    • Use UPPER CASE for all CP codes with no leading/trailing spaces or junk characters
    • Ensure CP codes are valid and linked to the custodian in NCL
    • No need to upload daily if there are no changes; last successful upload remains in effect
  • Trading Members should:
    • Monitor the daily CM_InactiveCP_ddmmyyyy.csv file from the Extranet/Common/clearing folder to identify CP codes flagged as inactive

Important Dates

  • March 20, 2026: Circular issued
  • March 27, 2026: Facility goes live for custodians and trading members

Impact Assessment

This change affects custodians and trading members operating in the Capital Market Segment. Custodians gain a structured mechanism to communicate inactive CP codes to NCL, reducing settlement risks arising from trades routed through non-operational custodial accounts. Trading members will have daily visibility into inactive CP codes, enabling them to avoid or flag such trades proactively. The operational impact is moderate — requiring one-time role configuration in N-MASS and periodic file management by custodians.

Impact Justification

Operational change affecting custodians and trading members regarding CP code activity status; limited to clearing and settlement workflow, no direct market or price impact.