Description

NSE Clearing Limited has revised the list of approved securities (equity shares, ETFs, GOI securities, mutual funds, corporate bonds) and empaneled banks for collateral purposes in the Commodity Derivatives Segment, effective May 2026.

Summary

NSE Clearing Limited (NCL) has issued a revised list of approved securities and empaneled banks for the Commodity Derivatives Segment (Circular Ref. No. 0145/2026, Download Ref No: NCL/COM/73903), superseding the earlier circular no. 0117/2026 dated March 20, 2026. The revised lists cover equity shares, ETFs, GOI securities, sovereign gold bonds, 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 seven annexures across multiple asset classes for use as collateral/liquid assets in the Commodity Derivatives Segment.
  • Annexure 1: Equity shares forming the non-cash component of liquid assets, with market-wide limits, member-specific limits, and VAR-based haircut rates.
  • Annexure 2: ETFs as non-cash component of liquid assets with applicable limits and haircut rates.
  • Annexure 3: ETFs as cash component of liquid assets with applicable limits and haircut rates.
  • Annexure 4: Sovereign Gold Bonds and GOI Securities (G-Sec)/T-Bills as cash component with applicable haircut rates.
  • Annexure 5: Open-ended mutual funds acceptable as collateral with market-wide limits and haircut rates.
  • Annexure 6: Corporate bonds as non-cash component of liquid assets with market-wide limits and haircut rates.
  • Annexure 7: Banks empaneled for issuance of BGs and FDRs.
  • 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 them at least two days before maturity.
  • Member-banks must ensure G-Sec provided as collateral is not reckoned for SLR purposes and not used for trading.

Regulatory Changes

This circular supersedes NCL circular no. 0117/2026 (dated March 20, 2026) and provides an updated enumeration of permissible collateral securities and empaneled banks. The haircut rates, market-wide limits, and member-specific limits have been revised as detailed in the seven annexures.

Compliance Requirements

  • All Members, Custodians, and PCMs in the Commodity Derivatives Segment must update their collateral portfolios to reflect the revised approved securities list for May 2026.
  • Members holding G-Sec/T-Bills as collateral must release them at least two days before maturity to account for the two-day shut period.
  • Member-banks must segregate G-Sec collateral from SLR holdings and ensure such securities are not used for trading.
  • Pledged equity shares must conform to the value-based prudential norm (no more than 25% margin shortfall at Clearing Member level upon exclusion of any single pledged security).

Important Dates

  • Circular Date: April 24, 2026
  • Effective Period: May 2026
  • Previous Circular Superseded: NCL/COM/73406 dated March 20, 2026

Impact Assessment

This is a routine monthly update to the approved collateral framework for the Commodity Derivatives Segment. Clearing Members and Custodians will need to review their existing collateral positions against the revised annexures to ensure compliance. Any securities removed from the approved list will require substitution before May 2026. The update to empaneled banks (Annexure 7) may affect members relying on specific banks for BG or FDR issuance. Overall market impact is moderate and operational in nature.

Impact Justification

Routine monthly revision of approved collateral securities list for clearing members in the Commodity Derivatives Segment. Affects collateral management practices but does not signal a market disruption or regulatory overhaul.