Starting in August, Clearing Corporation (CC) has made changes to the criteria based on which securities are approved for pledging. As per the new criteria, CC will accept equity securities as collateral only if they meet the following criteria:
- Impact cost of up to 0.1% for an order value of Rs. 1 lakhs.
- Traded on at least 99% of days over the past 6 months.
Securities that don’t match the criteria, cannot be pledged anymore, while the margin for the existing pledged quantity is reduced by increasing haircuts each month in a phased manner. You can check to this post for more: Changes in norms for acceptable collateral and exposure of Clearing Corporation