The Bombay Stock Exchange (BSE) on July 10, 2024, notified regarding the Norms for Acceptable Collateral and Exposure of Clearing Corpora with reference to ICCL Circular 20240531-3 dated May 31, 2024, on “Norms for acceptable collaterals and exposure of Clearing Corporations”.
The following has been stated:
• ICCL shall only accept equity securities towards collateral requirements that fulfil the following criteria as approved securities:
o Equity shares with impact cost of up to 0.1% for an order value of INR 1 Lakh and traded for at least 99% of days over the period of the previous 6 months.
o Equity Shares which have been shortlisted as per the above criteria in either of the exchanges i.e., BSE Limited (“BSE”), National Stock Exchange of India Limited (“NSE”), and Metropolitan Stock Exchange of India Ltd (“MSEI”) shall be accepted as eligible collateral.
• Changes in a haircut for Mutual Fund
o Haircut in respect of units of growth plans of overnight mutual fund schemes shall be 5%
o Haircut in respect of units of mutual fund schemes other than units of overnight mutual fund schemes liquid mutual fund schemes or government securities mutual fund schemes (by whatever name called which invest in government securities) shall be VaR Margin based on 6σ, subject to a minimum of 9%.
o The revised haircut shall be applicable from August 01, 2024.
[Notice No. 20240710-11]
