Changes in norms for acceptable collateral and exposure of Clearing Corporation

Starting August 1, 2024, the National Clearing Corporation (NCL) will be making changes to the criteria based on which securities are approved for pledging. As per the new criteria, NCL will accept equity securities as collateral only if they meet the following criteria:

  1. Impact cost of up to 0.1% for an order value of Rs. 1 lakhs.
  2. Traded on at least 99% of days over the past 6 months.

Equity securities that do not meet this criteria will not be accepted for pledging from August 1, 2024. NSE has provided a tentative list of securities that are currently allowed for pledging but do not meet the new criteria in the Annexure of this circular. The final list will be published in the monthly circular of approved securities.


Will I stop getting margin against securities that do not meet the criteria?

No, NCL will continue providing margins against these securities but will increase the haircut in a phased manner over the next few months starting 1st August, so the impact is minimal.

The haircut for these securities will be as follows:

Month Applicable haircut
From August 01, 2024 40% or VAR whichever is higher
From September 01, 2024 60% or VAR whichever is higher
From October 01, 2024 80% or VAR whichever is higher
From November 01, 2024 100%

NCL has also made changes in haircuts for mutual funds. These changes are as follows:

  1. Units of growth plans in overnight mutual fund schemes will have a 5% haircut.
  2. Units of mutual fund schemes (excluding overnight mutual fund schemes, liquid mutual fund schemes, or government securities mutual fund schemes) will have a haircut based on VaR Margin at 6σ, with a minimum of 9%
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As if the potential banning of weekly options wasn’t enough, this is another bad news.

5 of my scrips are in this list, including Bharat Bond 2033, which I’d planned to keep till maturity. Now, would have to consider selling all of them.

Then you also have haircut of Mutual Funds being increased. Lot of the Equity Mutual Funds have haircut of 7.5%, which will now be more…

1 Like

Same here, I have large holding of MOGSEC, which is basically variety of Gsec holdings in ETF format. The liquidity of MOGSEC is low, which doesn’t matter if you hold it for a very long period, but now I will need to liquidate it. Any suggestion what to buy which doesn’t suffer from the same issue down the line?

Unfortunately, no…

G-Secs used to be a good option for the Cash component part, but after they removed some long-dated securities out of nowhere earlier in the year, I don’t bother with them anymore.

Having said that, if you’re planning it for the long-term, maybe you could look at Gilt ETFs and Gilt Mutual Funds. But who knows, in the “interest of the retailers”, they might remove those too in the future…

Also, maybe diversify it across different AMCs, so that impact cost can be minimised.

1 Like

These ETF will be out of colleterial
What SEBI is killing all Liquidity

862 ABSLBANETF INF209KB17D5 BIRLASLAMC - ABSLBANETF
863 ABSLNN50ET INF209KB16D7 BIRLASLAMC - ABSLNN50ET
864 ABSLPSE INF209KB19Z4 BIRLASLAMC-ABSLPSE
865 ALPHAETF INF769K01KU7 MIRAEAMC - ALPHAETF
866 ALPL30IETF INF109KC17V7 ICICIPRAMC - ICICIALPLV
867 AUTOIETF INF109KC10V2 ICICIPRAMC - ICICIAUTO
868 AXISBNKETF INF846K01X63 AXISAMC - AXISBNKETF
869 AXISCETF INF846K016C7 AXISAMC - AXISCETF
870 AXISGOLD INF846K01W80 Axis MF - Axis Gold ETF
871 AXISHCETF INF846K01Z12 AXISAMC - AXISHCETF
872 AXISILVER INF846K011K1 AXISAMC - AXISILVER
873 AXISNIFTY INF846K01W98 AXISAMC - AXISNIFTY
874 AXISTECETF INF846K01Y96 AXISAMC - AXISTECETF
875 AXSENSEX INF846K010Q0 AXISAMC - AXSENSEX
876 BANKBETF INF0QA701714 BFAM - BANKBETF
877 BANKETF INF769K01KR3 MIRAEAMC - BANKETF
878 BANKETFADD INF740KA1RX3 DSPAMC - DSPBANKETF
879 BANKIETF INF109KC15I8 ICICIPRAMC - IPRU5008
880 BANKNIFTY1 INF174K01F59 KOTAKMAMC - KOTAKBKETF
881 BBETF0432 INF754K01OB1 EDELAMC - BBETF0432
882 BBNPPGOLD INF251K01SU9 BARODABNP - BBNPPGOLD
883 BFSI INF769K01HI8 MIRAEAMC - MAFSETF
884 BSE500IETF INF109KC1V59 ICICIPRAMC -BSE500IETF
885 BSLGOLDETF INF209KB18D3 AB SL Gold ETF-GO
886 BSLNIFTY INF209KB19D1 AB SL Nifty ETF - GO
887 BSLSENETFG INF209KB10E8 BIRLASLAMC - BSLSENETFG
888 COMMOIETF INF109KC19O8 ICICIPRAMC - ICICICOMMO
889 CONSUMBEES INF204KA1LD7 NIP IND ETF CONSUMPTION
890 CONSUMIETF INF109KC1V42 ICICIPRAMC - ICICICONSU
891 DIVOPPBEES INF204KA1MS3 NIP IND ETF DIV OPP
892 EBBETF0433 INF754K01QX0 EDELAMC - EBBETF0433
893 EGOLD INF754K01SE6 EDELAMC - EGOLD
894 EQUAL50ADD INF740KA1QK2 DSPAMC - DSPNEWETF
895 ESG INF769K01GS9 MIRAEAMC - MAESGETF
896 ESILVER INF754K01SF3 EDELAMC - Esilver
897 FINIETF INF109KC17L8 ICICIPRAMC-FINIETF
898 FMCGIETF INF109KC19V3 ICICIPRAMC - ICICIFMCG
899 GOLDCASE INF0R8F01042 ZERODHAAMC - GOLDCASE
900 GOLDETF INF769K01JP9 MIRAEAMC - MAGOLDETF
901 GOLDETFADD INF740KA1SW3 DSPAMC - DSPGOLDETF
902 GOLDSHARE INF789F1AUX7 UTI Mutual Fund - UTI Gol
903 HDFCBSE500 INF179KC1EZ4 HDFCAMC - HDFCBSE500
904 HDFCGROWTH INF179KC1DJ0 HDFCAMC - HDFCGROWTH
905 HDFCLOWVOL INF179KC1HU8 HDFCAMC - HDFCLOWVOL
906 HDFCMID150 INF179KC1HT0 HDFCAMC - HDFCMID150
907 HDFCMOMENT INF179KC1HV6 HDFCAMC - HDFCMOMENT
908 HDFCNEXT50 INF179KC1HS2 HDFCAMC - HDFCNEXT50
909 HDFCNIF100 INF179KC1HR4 HDFCAMC - HDFCNIF100
910 HDFCNIFBAN INF179KC1HY0 HDFCAMC - HDFCNIFBAN
911 HDFCNIFIT INF179KC1IA8 HDFCAMC - HDFCNIFIT
912 HDFCNIFTY INF179KC1965 HDFCAMC - HDFCNIFTY
913 HDFCPSUBK INF179KC1HW4 HDFCAMC HDFCPSUBK
914 HDFCPVTBAN INF179KC1HZ7 HDFCAMC - HDFCPVTBAN
915 HDFCQUAL INF179KC1DL6 HDFCAMC - HDFCQUAL
916 HDFCSENSEX INF179KC1HX2 HDFCAMC - HDFCSENSEX
917 HDFCVALUE INF179KC1DK8 HDFCAMC - HDFCVALUE
918 HEALTHIETF INF109KC1Q72 ICICIPRAMC - ICICIPHARM
919 HEALTHY INF209KB10C2 BIRLASLAMC - HEALTHY
920 IDFNIFTYET INF194KA1U07 BANDHANAMC - IDFNIFTYET
921 INFRABEES INF732E01268 NIP IND ETF INFRA BEES
922 INFRAIETF INF109KC16E5 ICICIPRAMC - ICICIINFRA
923 IT INF174KA1GC5 KOTAKMAMC - KOTAKIT
924 ITETF INF769K01KV5 MIRAEAMC - ITETF
925 ITETFADD INF740KA1SX1 DSPAMC - DSPITETF
926 ITIETF INF109KC16I6 ICICIPRAMC - ITIETF
927 IVZINGOLD INF205K01361 Invesco India Gold ETF
928 LICMFGOLD INF397L01554 LIC MF – LIC Gold ETF
929 LICNETFN50 INF767K01OS7 LICNAMC - LICNFENGP
930 LOWVOL INF769K01JU9 MIRAEAMC - MANV30F
931 LOWVOL1 INF174KA1IY5 KOTAKMAMC - KOTAKLOVOL
932 LOWVOLIETF INF109KC19U5 ICICI Pru Nifty Low vol30
933 MAFANG INF769K01HF4 MIRAEAMC - MAFANG
934 MAHKTECH INF769K01HS7 MIRAEAMC - MAHKTECH
935 MAKEINDIA INF769K01IB1 MIRAEAMC - MAMFGETF
936 MASPTOP50 INF769K01HP3 MIRAEAMC - MASPTOP50
937 MIDCAP INF174KA1IB3 KOTAKMAMC - KOTAKMID50
938 MIDCAPETF INF769K01IC9 MIRAEAMC - MAM150ETF
939 MIDCAPIETF INF109KC11W8 ICICIPRAMC - ICICIM150
940 MIDQ50ADD INF740KA1QL0 DSPAMC - DSPQ50ETF
941 MIDSELIETF INF109KC10W0 ICICI Pru Midcap Sel ETF
942 MIDSMALL INF769K01LJ8 MIRAEAMC - MIDSMALL
943 MNC INF174KA1JF2 KOTAKMAMC - KOTAKMNC
944 MOHEALTH INF247L01BB1 MOTILALAMC - MOHEALTH
945 MOLOWVOL INF247L01BL0 MOTILALAMC - MOLOWVOL
946 MOM100 INF247L01023 Motilal Os Midcap100 ETF
947 MOM30IETF INF109KC17C7 ICICIPRAMC - ICICIMOM30
948 MOM50 INF247L01536 Motilal Oswal M50 ETF
949 MOMENTUM INF209KB14K7 BIRLASLAMC - MOMENTUM
950 MOMOMENTUM INF247L01BK2 MOTILALAMC - MOMOMENTUM
951 MONIFTY500 INF247L01BU1 MOTILALAMC - MONIFTY500
952 MONQ50 INF247L01AU3 MOTILALAMC - MONQ50
953 MOQUALITY INF247L01BH8 MOTILALAMC - MOQUALITY
954 MOREALTY INF247L01CI4 MOTILALAMC - MOREALTY
955 MOSMALL250 INF247L01CH6 MOTILAL OSWAL MUTUAL FUND - MOTILAL OSWAL NIFTY SMALLCAP 250 ETF
956 MOVALUE INF247L01BE5 MOTILALAMC - MOVALUE
957 NETF INF277K015R5 TATAAML - NETF
958 NEXT50 INF769K01FN2 MIRAEAMC - MANXT50
959 NEXT50IETF INF109KC1NS5 ICICIPRAMC - ICICINXT50
960 NIF100BEES INF204K014N5 NIP IND ETF NIFTY 100
961 NIF100IETF INF109KC16V9 ICICI Pru Nifty 100 ETF
962 NIFMID150 INF789F1AYX9 UTIAMC - NIFMID150
963 NIFTY1 INF174K014P6 Kotak Nifty ETF
964 NIFTY50ADD INF740KA1CL0 DSPAMC - DSPN50ETF
965 NIFTYBETF INF0QA701722 BFAM - NIFTYBETF
966 NIFTYETF INF769K01EG9 MIRAEAMC - MAN50ETF
967 NIFTYQLITY INF209KB15K4 BIRLASLAMC - NIFTYQLITY
968 NPBET INF277K010X4 TATAAML - NPBET
969 NV20 INF174K01Z71 KOTAKMAMC - KTKNV20ETF
970 NV20BEES INF204KB18I3 NIP IND ETF ETF NV20
971 NV20IETF INF109KC11V0 ICICI Pru NV20 ETF
972 PSUBANK INF373I01023 Kotak Mahindra Mutual Fun
973 PSUBANKADD INF740KA1SY9 DSPAMC - DSPPSBKETF
974 PSUBNKIETF INF109KC10S8 ICICIPRAMC - PSUBANKICI
975 PVTBANIETF INF109KC18U7 ICICIPRAMC - ICICIBANKP
976 PVTBANKADD INF740KA1TA7 DSPAMC - DSPPVBKETF
977 QGOLDHALF INF082J01408 Quantum Gold Fund -Exchan
978 QNIFTY INF082J01028 Quantum Nifty ETF
979 QUAL30IETF INF109KC18V5 ICICIPRAMC - ICICIQTY30
980 SBIETFCON INF200KA1X17 SBIAMC - SBIETFCON
981 SBIETFIT INF200KA1S14 SBIAMC - SBIETFIT
982 SBIETFPB INF200KA1S22 SBIAMC - SBIETFPB
983 SBIETFQLTY INF200KA1WX6 SBIAMC - SBIETFQLTY
984 SDL24BEES INF204KB18W4 NIPPON INDIA- NIMFXX
985 SDL26BEES INF204KC1022 RELCAPAMC-SDL26BEES
986 SENSEXADD INF740KA1SZ6 DSPAMC - DSPSENXETF
987 SENSEXETF INF769K01KT9 MIRAEAMC - SENSEXETF
988 SENSEXIETF INF346A01034 ICICI Pru Sensex ETF
989 SETFNIFBK INF200KA1580 SBI-ETF Nifty Bank
990 SETFNN50 INF200KA1598 SBI-ETF Nifty Next 50
991 SHARIABEES INF732E01128 NIP IND ETF SHARIAH BEES
992 SILVER1 INF174KA1KU9 Kotak Silver ETF
993 SILVERADD INF740KA1RE3 DSPAMC - DSPSILVETF
994 SILVERETF INF789F1AYK6 UTIAMC - SILVERETF
995 SILVRETF INF769K01KG6 MIRAEAMC - MASILVER
996 SMALLCAP INF769K01LC3 MIRAEAMC - SMALLCAP
997 TATAGOLD INF277KA1976 TATAAML-TATAGOLD
998 TATSILV INF277KA1984 TATAAML-TATSILV
999 TECH INF209KB11D8 BIRLASLAMC - TECH
1000 TNIDETF INF277KA1364 TATAAML - TNIDETF
1001 UTIBANKETF INF789F1AUV1 UTIAMC - UTIBANKETF
1002 UTINEXT50 INF789F1AUW9 UTIAMC - UTINEXT50
1003 UTINIFTETF INF789F1AZC0 UTIAMC - UTINIFTETF
1004 UTISENSETF INF789FB1X58 UTIAMC - UTISENSETF
1005 UTISXN50 INF789F1AUU3 UTIAMC - UTISXN50
1006 GSEC10IETF INF109KC18O0 ICICI Pru Nifty 10 yr Benchmark G-Sec ETF
1007 GSEC5IETF INF109KC14A8 ICICIPRAMC - ICICI5GSEC
1008 LICNETFGSC INF767K01MV5 LICNAMC - LICNMFET
1009 MOGSEC INF247L01AK4 MOTILALAMC - G5
1010 SETF10GILT INF200KA1JT1 SBIAMC - SETF10GILT

Yeah, such a stringent impact cost rule does not make sense at all. That is what the % haircut is for. 10% is more than enough for these ETFs, but even otherwise they could have increased it to 12-15% instead of removing them totally. I guess NSE will also earn their commission from the forced churn of these securities, so SEBI should monitor if these rules make sense or not.

What will happen to an Equity Mutual Fund which has 70% Collateral Stocks & 30% non collateral stocks ? Will the haircut reflect the same ?

@Meher_Smaran this is only or MTF or for F&O also please confirm