The National Stock Exchange (NSE) on March 19, 2025, issued a circular regarding the Colocation - Revision in rack allotment procedure.
The Colo Participants are requested to note below changes w.r.t. rack allotment procedure:
A. Changes in existing offering related to earmarking of racks to specific waitlist in scenario where there are no rack desire requests:
The Revised Points are as stated:
• Once the available racks are earmarked for a waitlist and there is a scenario where there is no rack desire request pending for allotment within the waitlist, all the available racks shall now be earmarked for provisioning of allotment to the other waitlists as per the applicable quota for fulfilling the rack desire requests.
B. Provision to transfer racks allotted to existing Colo participant to a new member under specific scenario.
Exchange shall facilitate transfer of racks from an existing member to another member (who was an FPI/FII Client or a Domestic Investor trading with the existing member) under the conditions below:
• Domestic Investor of the member for whom the rack is currently being used gets registered as member of the Exchange.
• FPI/FII Client or foreign body corporate incorporated outside India for whom the rack is currently being used; registers an entity in India and gets registered as member of the Exchange.
• The racks proposed to be transferred should be in use by the client who is taking up membership of the Exchange for a period of at least 3 months for which existing member and the client will be required to submit a requisite declaration stating the same along with the request letter for such transfer.
• Both the members (transferer and transferee) will be required to provide a request letter on their respective company letter head stating the reason for transfer of rack along with the rack details and an NOC for rack transfer.
• Members will be required to submit a request letter as per Annexure 1 providing details of the rack to be transferred along with a letter from the recipient member as per Annexure 2. (request to be submitted with the Exchange with 30 days advance notice)
C. Changes in existing clauses related to non-usage of racks for more than 6 months
The Revised Points are as stated:
• Colo Participants are advised to commence utilization of racks within 6 months from the date of allotment or consider surrender of racks.
• In case the FPI/FII, Domestic Investors client dissociates with the member, the member should surrender the racks back to the Exchange.
• Exchange may analyse the usage of racks based on broad criteria like Power consumed / IP subscribed / physical occupancy of rack / Port activation etc.
• In case the racks in not utilised for more than 6 months, the participant shall be levied with additional non usage charges for each additional month on such unused racks
The changes communicated in section A and B shall be effective immediately. The changes as per section C of this circular shall be applicable with effect from April 01, 2025.
Please find the Annexures attached to the document provided below.
Department: Member Service Department
[Circular No: 10/2025]
