Description
NSE Clearing imposes 15% additional exposure margin on 20 securities in equity derivatives where top 10 clients exceed 20% of MWPL, effective May 4, 2026 after April expiry.
Summary
NSE Clearing Limited (NCL) has mandated an additional exposure margin of 15% on equity derivatives for 20 securities where the top 10 clients collectively account for more than 20% of the Market Wide Position Limit (MWPL). This framework, referencing the original NSE circular NSE/INVG/40472 dated March 18, 2019, will be effective from May 4, 2026, immediately after the expiry of April 2026 contracts.
Key Points
- Additional exposure margin of 15% will be levied in the equity derivatives segment on identified securities
- Applicable where top 10 clients account for more than 20% of MWPL
- Where additional surveillance margin is also applicable, the higher of the two margins will be levied
- Securities are identified using 3-month rolling data and reviewed monthly
- 20 securities have been shortlisted in the current review (Annexure 1)
- Circular reference: NCL/CMPT/73798, Circular Ref. No: 042/2026
Regulatory Changes
This circular activates and updates the framework established under NSE/INVG/40472 (March 18, 2019). The key regulatory change is the identification and notification of 20 specific securities now subject to the 15% additional exposure margin. The higher-of-two-margins rule ensures that additional surveillance margin and additional exposure margin are not additive but rather the more stringent one applies.
Compliance Requirements
- All members of NSE Clearing must ensure sufficient margin is collected from clients trading in F&O contracts for the 20 listed securities
- Members must apply the 15% additional exposure margin on top of regular margins for the identified securities
- Where additional surveillance margin is also in force for any of these securities, members must levy whichever margin is higher
- Members should communicate revised margin requirements to their clients ahead of the May 4, 2026 effective date
Important Dates
- April 20, 2026: Circular issued
- May 4, 2026: Framework becomes effective, immediately after expiry of April 2026 contracts
- Monthly: List of securities under this framework reviewed on a rolling 3-month basis
Impact Assessment
Affected Securities (20 stocks):
| Sr. No. | Symbol | Security Name | ISIN |
|---|---|---|---|
| 1 | ADANIENSOL | Adani Energy Solutions Limited | INE931S01010 |
| 2 | AMBUJACEM | Ambuja Cements Limited | INE079A01024 |
| 3 | AUROPHARMA | Aurobindo Pharma Limited | INE406A01037 |
| 4 | BANDHANBNK | Bandhan Bank Limited | INE545U01014 |
| 5 | CONCOR | Container Corporation of India Limited | INE111A01025 |
| 6 | DLF | DLF Limited | INE271C01023 |
| 7 | GLENMARK | Glenmark Pharmaceuticals Limited | INE935A01035 |
| 8 | IDEA | Vodafone Idea Limited | INE669E01016 |
| 9 | INOXWIND | Inox Wind Limited | INE066P01011 |
| 10 | LICHSGFIN | LIC Housing Finance Limited | INE115A01026 |
| 11 | NBCC | NBCC (India) Limited | INE095N01031 |
| 12 | NMDC | NMDC Limited | INE584A01023 |
| 13 | PATANJALI | Patanjali Foods Limited | INE619A01035 |
| 14 | SAIL | Steel Authority of India Limited | INE114A01011 |
| 15 | SAMMAANCAP | Sammaan Capital Limited | INE148I01020 |
| 16 | MANAPPURAM | Manappuram Finance Limited | INE522D01027 |
| 17 | JIOFIN | Jio Financial Services Limited | INE758E01017 |
| 18 | RBLBANK | RBL Bank Limited | INE976G01028 |
| 19 | IEX | Indian Energy Exchange Limited | INE022Q01020 |
| 20 | JSWSTEEL | JSW Steel Limited | INE019A01038 |
The additional 15% margin requirement will significantly increase the cost of carrying leveraged positions in these securities’ F&O contracts, likely reducing speculative concentration and open interest. Traders and institutional participants holding large derivative positions in these stocks will need to deploy additional capital or reduce position sizes. The measure targets concentration risk where a small number of clients dominate positions relative to the overall market limit.
Impact Justification
Affects 20 actively traded securities across sectors with mandatory 15% additional margin levy in F&O segment; directly increases trading costs and margin requirements for derivatives participants from May 4, 2026.