Скачать или смотреть NSE removes over 1,000 stocks from collateral list? why is NSE doing this?

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NSE removes over 1,000 stocks from collateral list?
क्यूँ कर रहा है NSE ऐसा ?
क्या मतलब है इसका?
आप पर इसका Impact क्या होगा?

A lot of users have stocks, ETFs, and mutual funds in their holdings, but will have limited cash margins, due to which they may lose trade opportunities

In such circumstances, they can pledge their shares/MF/ETFs for collateral margins, which you will receive after a % deduction called a haircut.

After the investor pledges shares to the broker to maintain his margin requirement, the broker then pledges it to Clearing Corporation to maintain account balance

The margin received from pledging i.e. collateral margin can be used for trading Equity Intraday, futures & options writing (equity and currency F&O)

The collateral margin will be adjusted for the price variations in the security at the end of each trading day

Exchanges stipulate that for overnight F&O positions, 50% of the margin needs to compulsorily come in cash or cash equivalent collateral,  and the remaining 50% can be in terms of non-cash collateral margin .

If you don’t have sufficient cash margin and the shortfall is funded by non-cash collateral, there will be a delayed payment charge of 0.035% per day or 12.775% p.a on the shortfall in the cash margin requirement

In a recent circular, the National Stock Exchange (NSE) tightened list of securities eligible as collateral for margin funding used in intraday or derivatives trading

Earlier, around 1,730 stocks were eligible to pledged as collateral but the new list eliminates 1,010 stocks starting August 1, 2024 in a phased manner. This includes well-known companies such as Adani Power, Yes Bank, Suzlon, Hudco, Bharat Dynamics, Bharti Hexacom, IRB Infrastructure, NBCC, Go Digit, Tata Investment, Paytm, Inox Wind, Jupiter Wagons, KIOCL, Jyoti CNC Automation, JBM Auto, Hatsun Agro Product, Tejas Networks, among others

Notably, 25 of the securities being excluded have a market capitalization exceeding ₹20,000 crore each

Starting August 1, the exchange said that it will accept collateral only those securities that have been traded at least 99 percent of the days over the last 6 months and have an impact cost of up to 0.1 percent for an order value of Rs 1 lakh

In order to provide a transitional support to the clearing members for replacing the unapproved securities, the NSE will progressively raise the haircut. The progressive increase in the haircut percentages from August 1 to November 1 will gradually phase out the use of certain securities as collateral by making them less attractive over time.

The initial haircut applied on the unapproved securities will be 40 percent or the value at risk (VAR), whichever is higher. This will increase to 60 percent from September 1, 80 percent from October 1, and 100 percent from November 1.

The overall aim of these changes is to ensure that only highly liquid and stable stocks are used as collateral, thereby reducing the risk for the clearinghouse and the broader financial system.