The Indian Clearing Corporation Ltd (ICCL) has issued this notice in reference to circular no. 20260424-33 dated April 24, 2026, detailing adjustments to cross margin weightages for indices due to the demerger of Vedanta Limited (BSE: 500295). Vedanta Limited will be excluded from cross margin computation effective April 29, 2026 end of day, with revised index weightages published based on closing prices on April 30, 2026 and applicable from May 5, 2026.

Key Points

• Vedanta Limited (500295) will be excluded from cross margin computation from April 29, 2026, end of day
• Weightages for other index constituents will remain unchanged at the time of exclusion
• Revised index weightages will be published based on Vedanta Limited’s closing price on April 30, 2026
• Revised weightages become effective from May 5, 2026, begin of day
• Members must sync their portfolios to revised weightages by May 4, 2026, end of day
• Spread margins for NIFTYNXT50 and SX40 Index portfolios will increase from 25% to 30% during the transition period (April 29 to May 4, 2026)

Regulatory Changes

As a consequence of the corporate action (demerger) in Vedanta Limited (500295), ICCL is making the following changes to cross margin benefit computation:

1. Temporary exclusion of Vedanta Limited from cross margin constituent weightages
2. Recalculation and republication of index constituent weightages post-demerger
3. Temporary increase in spread margins from 25% to 30% for NIFTYNXT50 and SX40 Index during the transition window (April 29 – May 4, 2026)

Compliance Requirements

• Members must note the exclusion of Vedanta Limited (500295) from cross margin computation effective April 29, 2026 end of day
• Members must monitor ICCL communications for revised weightage publication (expected after April 30, 2026 closing prices)
• Members must synchronize their portfolios as per the revised weightages by May 4, 2026, end of day
• Members should account for the increased spread margin (30%) for NIFTYNXT50 and SX40 Index portfolios during April 29 – May 4, 2026

For assistance or clarification, members may contact the Risk Department:

• Email: risk.iccl@icclindia.com / risk.monitoring@icclindia.com
• Phone: +91-22-22725186 / 5059 / 8811

Important Dates

Impact Assessment

Market Impact: The demerger of Vedanta Limited creates a structural change in index composition, requiring all cross margin positions referencing affected indices (NIFTYNXT50 and SX40) to be recalibrated. The temporary elevation of spread margins from 25% to 30% increases the margin requirement for portfolio-based positions during the transition, potentially triggering margin calls for members with leveraged cross-margin portfolios.

Operational Impact: Members with derivatives positions involving Vedanta Limited or indices containing Vedanta (NIFTYNXT50, SX40) face a tight operational window of approximately one week to update their risk systems and rebalance portfolios. Failure to sync portfolios by May 4, 2026 EOD may result in margin shortfalls when revised weightages go live on May 5, 2026.

Risk Consideration: The spread margin increase to 30% is a precautionary measure by ICCL to manage the elevated uncertainty in index constituent weightages during the demerger transition. Members should review their exposure to the affected indices and ensure adequate capital availability during this period.

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.