NSE Clearing Limited has issued adjustments to cross margin weightages for index constituents in light of the ongoing demerger of Vedanta Limited (VEDL). This circular outlines a phased transition: VEDL will be temporarily excluded from cross margin computation, revised index weightages will be published based on VEDL’s post-demerger closing price, and spread margins for NIFTYNXT50 will be temporarily elevated.

Key Points

• VEDL will be excluded from cross margin computation effective April 29, 2026 end of day
• Weightages for all other index constituents remain unchanged during the transition
• Revised index weightages will be calculated using VEDL’s closing price on April 30, 2026
• Revised weightages become effective from May 05, 2026 begin of day
• Spread margins for NIFTYNXT50 Index will increase from 25% to 30% during the transition window
• This circular follows earlier circulars NSE/FAOP/73857 (April 22, 2026) and NCL/CMPT/73864 (April 23, 2026)

Regulatory Changes

Cross margin weightage computation rules are temporarily modified to accommodate the structural change caused by VEDL’s demerger. Specifically:

• VEDL is excluded from index cross margin calculations starting April 29, 2026 end of day
• Spread margin percentage for NIFTYNXT50 Index is raised from 25% to 30% for the transition period (April 29, 2026 EOD to May 04, 2026 EOD)

Compliance Requirements

• Members must sync their portfolios to reflect the revised index weightages by May 04, 2026 end of day
• Members should monitor the publication of revised weightages (expected after April 30, 2026 close) and update their systems accordingly
• Risk systems must account for the increased NIFTYNXT50 spread margin of 30% during the transition window

Important Dates

Impact Assessment

This circular has significant operational impact on members with positions in VEDL or in indices containing VEDL (particularly NIFTYNXT50). Portfolio managers and risk officers need to:

• Update cross margin models to exclude VEDL from April 29, 2026
• Prepare for higher margin requirements on NIFTYNXT50 spread positions during the transition (25% → 30%)
• Actively rebalance portfolios once revised weightages are published post April 30, 2026

The tight timeline between weightage publication (post April 30) and the compliance deadline (May 04 EOD) gives members approximately 2–3 working days to adjust, making prompt action essential.