The National Commodity Clearing Limited (NCCL) on April 27, 2026, notified regarding the revised Scheme of deposit for acceptance of Mutual Fund Units as collateral.
The following has been stated:
• It has issued a revised scheme for acceptance of mutual fund units as collateral towards Additional Base Capital (ABC) for clearing members. Under this framework, approved mutual fund units can be pledged as non-cash collateral, with their value determined daily based on Net Asset Value (NAV) and adjusted by prescribed haircuts.
• The circular specifies prudential limits, including a cap of ₹100 crore per mutual fund at the AMC level and ₹50 crore per clearing member (post-haircut), while the overall contribution of such collateral (along with other approved securities and commodities) is restricted to a specified portion of total deposits with the clearing corporation.
• Only mutual funds included in the approved list (aligned with exchange norms) are eligible, and units removed from the list lose collateral value immediately.
• The scheme also emphasizes risk management through haircut application, continuous valuation, and strict eligibility norms, thereby enabling members to diversify collateral while maintaining market safety and liquidity standards.
[Notification no. - NCCL/RISK-019/2026]
