Description

NSE revises the list of approved equity shares and banks eligible as non-cash component of liquid assets for the Currency Derivatives segment, specifying permitted quantities and applicable haircuts.

Summary

NSE has issued a revised list of approved securities (Annexures 1–5) that are eligible to form part of the non-cash component of liquid assets for the Currency Derivatives (CD) segment. The circular specifies overall permitted quantities across all segments and memberwise permitted quantities specifically for the CD segment, along with applicable haircut norms.

Key Points

  • Approved equity shares in Annexure 1 are subject to VAR (Value at Risk)-based haircuts when pledged as non-cash liquid assets.
  • A value-based prudential norm applies: exclusion of a pledged security must not result in a margin shortfall of more than 25% at the Clearing Member level.
  • The revised list includes 39+ large-cap NSE-listed equities spanning banking, energy, IT, pharma, FMCG, and infrastructure sectors.
  • Memberwise permitted quantity for the CD segment is marked as “N.A” for all listed securities in Annexure 1 & 2.
  • Annexures 3, 4, and 5 (referenced in the zip file) cover additional categories including approved banks.

Regulatory Changes

  • This circular supersedes/revises the previous approved securities list for the CD segment.
  • The overall permitted quantities have been updated for all 39+ securities to reflect current market conditions and free-float positions.
  • ETERNAL LIMITED (INE758T01015) and JIOFIN (INE758E01017) are included in the revised list, reflecting recent additions to the large-cap universe.

Compliance Requirements

  • Clearing Members in the CD segment must ensure that pledged securities used as non-cash collateral are from the approved list only.
  • Members must adhere to the VAR-based haircut for each approved security.
  • The 25% margin shortfall prudential limit must be monitored at the Clearing Member level when any pledged security is excluded.
  • Members holding securities beyond the overall permitted quantities must rebalance their collateral accordingly.

Important Dates

  • Effective date: As communicated by NSE with this circular (2026-04-24); members should treat the revised list as operative immediately upon issuance.

Impact Assessment

  • Clearing Members (CD Segment): Must review their current non-cash collateral holdings against the revised permitted quantities. Any excess holdings will need to be replaced with cash or other eligible securities.
  • Market Participants: The inclusion of high-liquidity large-cap stocks (HDFCBANK, RELIANCE, ICICIBANK, ITC, etc.) with large permitted quantities ensures broad availability of eligible collateral.
  • Operational Impact: Low to medium — this is a routine revision. However, members with concentrated positions in securities where permitted quantities have changed may need to adjust pledged collateral.
  • Systemic Risk: The 25% prudential norm on margin shortfall limits concentration risk at the Clearing Member level, maintaining market stability in the CD segment.

Impact Justification

Operational circular affecting clearing members in the CD segment by revising permissible securities for non-cash margin. Impacts collateral eligibility for 39+ large-cap stocks but does not alter trading rules or introduce new compliance obligations.