Over 1,000 Stocks Including Adani Power, and Yes Bank Dropped from the Collateral List

Starting August 1, NSE will update collateral criteria, disqualifying over 1,000 stocks like Adani Power and Yes Bank due to new trading frequency and impact cost requirements.
Over 1,000 Stocks Including Adani Power, and Yes Bank Dropped from the Collateral List

Starting August 1, over 1,000 stocks including Adani Power and Yes Bank will no longer be eligible as collateral on the National Stock Exchange (NSE). This change comes after NSE updated its eligibility criteria for securities that can be accepted as collateral.

The new requirements set by NSE Clearing (NCL) state that only stocks traded on at least 99% of the days in the past six months and with an impact cost of 0.1% for orders worth ₹1 lakh will be accepted. This revision affects a broad range of securities across various sectors.

Apart from prominent names like Suzlon, Hudco, and Bharat Dynamics, other notable stocks such as Bharti Hexacom, IRB Infrastructure, and NBCC are also impacted. The updated list includes a total of 1,010 stocks deemed ineligible for collateral purposes.

To facilitate a smoother transition, NCL will continue valuing the unapproved securities repledged up to July 31, 2024, applying a variable haircut. This allows clearing members time to adjust their collateral holdings accordingly.

From August 1, the applicable haircut will be 40% or the value at risk, whichever is higher, with this rate increasing in the following months. By November, the haircut will rise to 100%, reflecting stricter collateral standards by NSE.

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