Description

NSE Clearing Limited updates the list of approved equity shares, ETFs, mutual funds, corporate bonds, G-Sec/T-Bills, and empaneled banks for BG/FDR issuance, effective May 2026.

Summary

NSE Clearing Limited (NCL) has issued its revised list of approved securities and empaneled banks for the Capital Market Segment, effective May 2026. This is a monthly update superseding circular 0116/2026 (NCL/CMPT/73410) dated March 20, 2026. The circular specifies eligible collateral instruments along with market-wide limits, member-specific limits, and applicable haircut rates across seven annexures.

Key Points

  • Seven annexures cover all eligible collateral categories: equity shares, ETFs (non-cash), ETFs (cash), Sovereign Gold Bonds and G-Sec/T-Bills, open-ended mutual funds, corporate bonds, and empaneled banks.
  • Haircut rates for equity shares are VAR-based (Value at Risk).
  • A 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 instruments at least two days before maturity.
  • Member banks must ensure G-Sec pledged as collateral is not reckoned for SLR purposes and not used for trading.
  • Effective date: May 2026.

Regulatory Changes

This circular supersedes the previous approved securities list from circular 0116/2026 dated March 20, 2026. It reflects the monthly rebalancing of eligible collateral instruments, applicable market-wide limits, and member-specific permitted quantities. No structural rule changes are introduced; this is a periodic list revision.

Compliance Requirements

  • All Members and Custodians: Update internal collateral management systems to reflect the revised lists in Annexures 1–7 before May 2026.
  • Member Banks: G-Sec/T-Bills pledged as collateral must not be used for SLR calculations or trading purposes.
  • All Members: Release G-Sec/T-Bills at least two days before maturity to account for the two-day shut period.
  • Clearing Members: Ensure pledged security exclusions do not breach the 25% margin shortfall prudential threshold at the CM level.

Important Dates

  • Circular Date: April 24, 2026
  • Effective From: May 2026
  • Supersedes: Circular 0116/2026 dated March 20, 2026

Impact Assessment

This is a routine monthly update with medium operational impact on clearing members and custodians. Firms must reconcile their pledged collateral portfolios against the updated annexures to ensure continued eligibility. Securities removed from the approved list may require substitution to avoid margin shortfalls. The 25% prudential norm on margin shortfall from excluded securities remains a key compliance threshold. Member banks face an additional compliance obligation to segregate G-Sec collateral from SLR holdings. Contact: collaterals_ops@nsccl.co.in or 1800 266 0050 (IVR option 2).

Impact Justification

Routine monthly collateral eligibility update affecting all clearing members and custodians. Medium impact as it governs which securities and banks can be used for margin/collateral purposes but does not introduce structural rule changes.