Description

NSE Clearing Limited revises the list of approved securities (equity, ETFs, G-Sec/T-Bills, Sovereign Gold Bonds, Mutual Funds) and empaneled banks for Bank Guarantees and FDRs, effective May 2026.

Summary

NSE Clearing Limited (NCL) has issued a revised list of approved securities and empaneled banks applicable for the month of May 2026. This circular supersedes circular no. 032/2026 (NCL/CMPT/73408) dated March 20, 2026. The revision covers six annexures detailing eligible collateral instruments across equity shares, ETFs, G-Sec/T-Bills, Sovereign Gold Bonds, and Open-Ended Mutual Funds, along with updated market-wide and member-specific limits and haircut rates.

Key Points

  • Revised approved securities list effective for May 2026
  • Six annexures cover all eligible liquid asset categories: equity shares, ETFs (non-cash and cash components), Sovereign Gold Bonds, GOI Securities/T-Bills, and Open-Ended Mutual Funds
  • Each security carries applicable market-wide permitted quantity limits, member-specific limits, and VAR-based haircut rates
  • Annexure 6 lists banks empaneled for issuance of Bank Guarantees (BGs) and Fixed Deposit Receipts (FDRs)
  • G-Sec/T-Bills carry a two-day shut period; members must release them at least two days before maturity
  • Member-banks must not reckon G-Sec provided as collateral for SLR purposes, nor use them for trading
  • Value-based prudential norm: exclusion of any pledged security must not result in a margin shortfall exceeding 25% at the Clearing Member level

Regulatory Changes

This circular replaces the prior approved securities list from circular 032/2026 dated March 20, 2026. Applicable haircut rates are VAR-based for equity shares in Annexure 1. Updated market-wide and member-specific quantity limits apply to all listed securities across all six annexures.

Compliance Requirements

  • All Participants and Custodians must update their collateral management systems to reflect the revised approved securities and limits for May 2026
  • Members holding G-Sec/T-Bills as collateral must ensure release at least two days prior to maturity to account for the two-day shut period
  • Member-banks are explicitly prohibited from using pledged G-Sec collateral toward their SLR requirement or for trading activity
  • Collateral pledges must comply with the 25% prudential norm: no single security exclusion should cause margin shortfall exceeding 25% at the Clearing Member level

Important Dates

  • Circular Date: April 24, 2026
  • Effective Period: May 2026
  • Previous Circular Superseded: Circular 032/2026 dated March 20, 2026

Impact Assessment

This is a routine monthly update affecting all NSE Clearing participants and custodians who use non-cash collateral. The revised limits and haircut rates across equity shares, ETFs, and fixed-income instruments (G-Sec, T-Bills, Sovereign Gold Bonds) may require participants to rebalance their collateral portfolios. Firms relying on G-Sec/T-Bills nearing maturity must act promptly to avoid margin shortfalls. The updated bank empanelment list (Annexure 6) affects members using BGs and FDRs as collateral instruments. Overall market impact is moderate and operational in nature.

Impact Justification

Routine monthly revision of approved collateral securities and empaneled banks affecting all NSE Clearing participants and custodians managing liquid assets and collateral positions.