NSE Clearing Fails To Meet Liquidity Norms

An NSE Clearing spokesperson said its auditors flagged the outstanding payment issue in their third-quarter financial review

New Delhi: NSE Clearing Ltd, the clearing house of the National Stock Exchange (NSE), has failed to meet the capital markets regulator Sebi’s mandated liquidity requirements, citing the non-payment of dues by rival BSE as the primary reason for the shortfall.In its December 2024 quarterly results, NSE Clearing, the exchange’s unit responsible for clearing and settling its trades, reported a shortfall of Rs176.65 crore in its minimum liquid assets.

The company informed Sebi in a letter dated January 9 that this deficit was primarily due to the non-receipt of Rs312.37 crore in dues from BSE. An NSE Clearing spokesperson said its auditors flagged the outstanding payment issue in their third-quarter financial review. The outstanding amount pertains to ‘interoperability arrangements’, the official said. “The company is yet to receive outstanding dues of over Rs300 crore from BSE Ltd. NSE Clearing is communicating with BSE on this matter,” the spokesperson added.

The Securities and Exchange Board of India (Sebi) has prescribed risk-based capital and net worth requirements for clearing corporations, which must maintain adequate liquid assets to ensure financial stability. The regulator introduced a framework for interoperability among clearing corporations on June 1, 2019, to reduce trading costs. This allows trading members to clear trades through a clearing firm of their choice rather than being restricted to the clearing corporation affiliated with the exchange where the trade was executed.