NSE revises limits for acceptance of bank guarantee from April 1

Top bourse National Stock Exchange of India (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 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 to all schemes, for professional clearing member in futures and option (F&O) and currency derivative as well as custodian clearing member in the cash market.