Brief Overview:
Updates to the SA‑CCR framework are proposed to better align with evolving legal, regulatory and global developments.
Technical Details:
Key proposed changes:
1) Wider CCR scope: Clarifies application across banking book and trading book exposures.
2) Netting and margining: Expands guidance on multiple margin agreements and netting sets in light of recent legal and regulatory developments.
3) Clearing member exposures: Introduces guidance for banks acting as clearing members of SEBI-recognised exchanges for equity and commodity derivatives.
4) Options treatment: Clarifies treatment of deferred option premiums and effective notional computation for options.
5) Disclosures: Adds standardised SA-CCR disclosure templates.
Comments due by 1st July 2026.
Takeaways:
The proposed changes are expected to place greater emphasis on enforceable netting, margining and collateral arrangements, with potential implications for capital, pricing and structuring of derivative transactions
For further details, please see:
Reserve Bank of India (Commercial Banks – Forthcoming Instructions)
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