The National Commodity & Derivatives Exchange Limited (NCDEX) on October 28, 2024, issued a notification regarding the Scheme of deposit for acceptance of Government Securities, Treasury Bills and Sovereign Gold Bonds as Collateral.
The Clearing Corporation allows members to deposit approved Government Securities, Treasury Bills, and Sovereign Gold Bonds as collateral, subject to applicable haircuts. The approved list and haircut requirements may be updated periodically, and benefits on these securities cease two days before maturity. Securities newly issued by RBI will be accepted once listed on NSE, while discontinued ones will receive no benefit. Banks providing such collaterals cannot count them towards their SLR requirements or use them for trading. Collateral value is determined daily based on prices from CCIL (for Government Securities and Treasury Bills) and NSE (for Sovereign Gold Bonds), net of the applicable haircut. The updated list, effective November 1, 2024, Annexure 1 attached to the document.
[Notification No. NCCL/RISK-058/2024]
