Over 1,000 securities not to be accepted as collateral from Aug 1

Over 1,000 securities not to be accepted as collateral from Aug 1

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Starting August 1, stocks such as Adani Power, Yes Bank, Suzlon, Hudco, Bharat Dynamics, Bharti Hexacom, IRB Infrastructure, NBCC, Go Digit, Tata Investment, Paytm, and Inox Wind, among 1,010 securities, will not be accepted as collateral. This change comes as the National Stock Exchange (NSE) revises the criteria for securities eligible as collateral.

NSE Clearing (NCL) will now accept only those stocks that have been traded at least 99% of the days over the previous six months and have an impact cost of up to 0.1% for an order value of ₹1 lakh.

According to a list published by NSE, about 1,010 stocks will not be eligible for acceptance as collateral from August 1.

To allow clearing members to replace the existing unapproved securities, NCL will continue to provide valuation of such existing unapproved securities repledged with NCL as of July 31, 2024, after applying the haircut.

From August 1, the applicable haircut is 40% or VAR (value at risk), whichever is higher. The haircut will increase to 60% from September 1, 80% from October 1, and 100% from November 1.Jupiter Wagons, KIOCL, Jyoti CNC Automation, JBM Auto, Hatsun Agro Product, Tejas Networks, Swan Energy are the other stocks not eligible for collateral.

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