Description

NSE revises the list of approved equity securities eligible as non-cash component of liquid assets for the Securities Lending and Borrowing (SLB) segment, covering 39 Nifty 50 securities with applicable haircuts and permitted quantities.

Summary

NSE has issued a revised list of approved equity securities that are eligible to form part of the non-cash component of liquid assets for the Securities Lending and Borrowing (SLB) segment. The circular (Annexure 1) specifies 39 large-cap securities along with their overall permitted quantities across all segments and memberwise permitted quantities for the SLB segment.

Key Points

  • 39 equity securities are approved as non-cash liquid asset components for the SLB segment
  • Applicable haircut for all listed securities is VAR (Value at Risk)-based
  • Value-based prudential norm applies: exclusion of a pledged security must not result in margin shortfall of more than 25% at a Clearing Member level
  • Memberwise permitted quantity for the SLB segment is listed as N.A for all 39 securities
  • All securities are major Nifty 50 constituents across diverse sectors

Regulatory Changes

This circular updates the previously approved list of securities eligible as non-cash collateral components. The revised list reflects current approved quantities and any changes in eligible securities for margin/collateral purposes in the SLB segment.

Compliance Requirements

  • Clearing Members must ensure that pledged securities used as non-cash liquid assets are from the approved list
  • Clearing Members must adhere to the prudential norm: removal of any pledged security from the non-cash component must not cause a margin shortfall exceeding 25% at the Clearing Member level
  • Quantities held must remain within the Overall Permitted Quantity limits specified for each security

Important Dates

  • Circular date: March 20, 2026
  • Effective date: As applicable per NSE operational guidelines (typically immediate or next trading day)

Impact Assessment

This is a routine operational update affecting Clearing Members and participants in the SLB segment who use equity shares as non-cash collateral. The 39 approved securities are all high-liquidity large-cap stocks, ensuring adequate market depth for collateral valuation. The VAR-based haircut methodology and 25% margin shortfall prudential cap provide risk management safeguards. Market participants should update their collateral management systems to reflect revised permitted quantities for each security.

Impact Justification

Routine periodic revision of approved securities list for SLB segment collateral. Affects clearing members and participants using these securities as non-cash liquid assets, but represents a standard operational update rather than a policy change.