The group recommends that the Board of Directors or other equivalent organ of the clearing corporation shall approve the list of acceptable securities, the hair-cuts applicable to various classes of securities, and the method of periodic revaluation (marking-to-market). The clearing corporation is free to adopt more stringent conditions than those described below.These policies shall be promptly disclosed to SEBI.

1. The marking to market of securities shall be carried out at least weekly for all securities.
2. Debt securities shall be acceptable only if they are investment grade. Haircuts shall be atleast 10% with weekly mark to market.
3. The total exposure of the clearing corporation to the debt or equity securities of any company shall not exceed 75% of the trade guarantee fund or 15% of the total liquid assets of the clearing corporation / house whichever is lower. Exposure for this purpose means the mark to market value of the securities less the applicable haircuts.
4. Equity securities shall be in dematerialised form. The acceptable securities shall be the top 100 securities by market capitalisation out of the top 200 securities by market capitalisation and also by trading value. This list shall be updated on the basis of the average market capitalisation over the previous six months. When a security is dropped from the list of acceptable securities, existing deposits of that security will continue to be counted for liquid assets for a period of one month. Haircuts on equity shall be at least 15% with weekly mark to market. The clearing corporation may charge a higher haircut on concentrated portfolios of equity securities deposited by a member.
5. All securities deposited for liquid assets shall be pledged in favour of the clearing corporation.