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NSE revises limits for acceptance of bank guarantee

Sunday, Mar 20, 2016,11:36 IST By Metrovaartha A A A

Mumbai | Top bourse NSE has revised the maximum value of bank guarantees that can be issued by a bank to market intermediaries across all segments from April 1. In a notice NSE has said it is revising the limits prescribed for acceptance of bank guarantee towards collaterals. Members are advised to check their applicable limit before getting their bank guarantees issued, NSE said in a circular.

The revised limits shall be made applicable with effect from April 1, 2016, it added. As per the revised norms, maximum bank guarantee limit for professional clearing member in equity derivatives, currency derivatives as well as custodian clearing member in cash market segment maximum bank guarantee will be Rs 200 crore.

Limits for trading members as well as clearing members in derivatives would be Rs 100 crore, while for other categories it would stand at Rs 50 crore. Further, the maximum value of bank guarantees that can be issued by the primary clearing bank on behalf of their clearing members has also been changed to Rs 250 crore for professional clearing member across all segments.

Trading members as well as clearing members, would have a limit of Rs 125 crore. In addition, Rs 1,500 crore would be applicable across all schemes, for professional clearing member in F&O and currency derivative as well as custodian clearing member in cash market.