Description

NSE Clearing Limited updates the approved list of equity shares, ETFs, GOI securities, mutual funds, corporate bonds, and empaneled banks for use as liquid assets/collaterals in the Futures and Options segment, effective May 2026.

Summary

NSE Clearing Limited (NCL) has issued a revised list of approved securities and empaneled banks for collateral purposes in the Futures and Options (F&O) segment, superseding circular 035/2026 dated March 20, 2026. The circular provides updated haircut rates, market-wide limits, and member-specific limits across seven annexures covering equity shares, ETFs, sovereign gold bonds, G-Sec/T-Bills, open-ended mutual funds, corporate bonds, and banks authorized for Bank Guarantees (BGs) and Fixed Deposit Receipts (FDRs). This circular is effective for the month of May 2026.

Key Points

  • Revised approved securities list covers equity shares (Annexure 1), ETFs as non-cash collateral (Annexure 2), ETFs as cash collateral (Annexure 3), Sovereign Gold Bonds and G-Sec/T-Bills (Annexure 4), open-ended mutual funds (Annexure 5), corporate bonds (Annexure 6), and empaneled banks for BGs/FDRs (Annexure 7)
  • For equity shares, applicable haircut is VAR-based; value-based prudential norm applies — exclusion of a pledged security must not result in margin shortfall exceeding 25% at a Clearing Member level
  • G-Sec/T-Bills carry a shut period of two days; members must release these securities at least two days before maturity
  • Member-banks providing G-Sec as collateral must not reckon them for SLR purposes and must not use them for trading
  • Supersedes circular 035/2026 (NCL/CMPT/73405) dated March 20, 2026

Regulatory Changes

This is a periodic revision of the approved collateral securities list. Market-wide applicable limits, member security-specific limits, and applicable haircut rates have been updated across all seven annexures. No structural policy changes are indicated; the update reflects routine rebalancing of eligible collateral securities.

Compliance Requirements

  • All Members/Custodians/PCMs must update their collateral management systems to reflect the revised approved securities list effective May 2026
  • Members holding G-Sec/T-Bills as collateral must ensure release at least two days before maturity to account for the shut period
  • Member-banks must ensure G-Sec submitted as collateral are excluded from SLR calculations and not used for trading purposes
  • Members must ensure pledged securities comply with the 25% prudential norm — no single security exclusion should cause a margin shortfall exceeding 25% at the Clearing Member level

Important Dates

  • Circular Date: April 24, 2026
  • Effective Date: May 2026 (full month)
  • Previous Circular Superseded: Circular 035/2026, dated March 20, 2026 (NCL/CMPT/73405)

Impact Assessment

This is a routine monthly update with medium operational impact for F&O clearing members, custodians, and primary clearing members (PCMs). Members must review all seven annexures to identify any securities added to or removed from the approved list, and adjust their collateral portfolios accordingly before May 2026. The update affects collateral eligibility, applicable haircut rates, and both market-wide and member-specific quantity limits. No immediate trading restrictions or market disruptions are anticipated. Members with automated collateral management systems should ensure timely data feed updates.

Impact Justification

Routine monthly update of approved collateral securities list affecting all F&O members and custodians. No extraordinary changes indicated; effective May 2026. Operationally significant for clearing members managing collateral portfolios.