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Introduction
Members of CBLO Segment are required to maintain
collateral/margin contributions with CCIL to cover their outstanding borrowing
and/or lending obligations.
Composition
Members can contribute securities and / or cash towards their
collateral / margin contributions for operating in the CBLO segment.
In respect of NDS members, cash collateral/margin
contributions for CBLO Segment are received in CCIL’s Current Account
maintained with RBI. For Associate Members, such contributions are received and
maintained in CCIL’s Current Accounts with its designated Settlement Bank(s).
Security collateral/margin contributions, in respect of all
members, are received and maintained in CCIL’s Constituent SGL (CSGL) Account
with RBI.
Work Process
i)
Cash
Collaterals
a)
Deposits
NDS
Members
NDS Members of CBLO Segment desirous
of making cash collateral/margin contributions are required to notify CCIL
about the same using a prescribed format. Cash contributions from members are
received by means of cheques drawn on their Current Account with Reserve Bank
of
India
, Mumbai. These cheques are required to
be deposited at CCIL counters within cut-off timings prescribed for the
purpose. Member balances are updated by CCIL upon confirmation of receipt of
funds into its Current Account with RBI. The deposits are reflected in the
Transaction Reports and Holding Reports which are electronically delivered to
the concerned members along with other daily business reports.
Non-NDS
Members (Associate Members)
Associate Members of CBLO Segment
desirous of making cash collateral/margin contributions are required to notify
CCIL about the same using a prescribed format. Cash contributions from
Associate Members are received in CCIL’s Current Account with the designated
Settlement Bank. Relative fund transfer to CCIL has to be ensured by the
concerned Associate Member within the cut-off timings prescribed for the
purpose. Member balances are updated by CCIL upon confirmation of actual
receipt of funds into its Current Account with concerned Settlement Bank. The
deposits are reflected in the Transaction Reports and Holding Reports which are
electronically delivered to the concerned members along with other daily
business reports.
b)
Withdrawals
NDS
Members
NDS Members of CBLO segment seeking
to withdraw cash from their collateral/margin contribution are required to send
a prior written notice to CCIL using a prescribed format within cut-off time
stipulated for the purpose. The withdrawal requests are processed and approved
after taking into account the concerned member’s margin requirement on its
outstanding CBLO contracts. The withdrawal payments are made by CCIL from
Current Account with Reserve Bank of
India
, Mumbai. The cheques are delivered to
concerned Members on value date payment at CCIL counters. The withdrawals are
reflected in the Transaction Reports and Holding Reports which are
electronically delivered to the concerned members along with other daily
business reports.
Non-NDS
Members (Associate Members)
Associate members of CBLO segment
seeking to withdraw cash from their collateral/margin contribution are required
to send a prior written notice to CCIL using a prescribed format within cut-off
time stipulated for the purpose. The withdrawal requests are processed and
approved after taking into account concerned member’s margin requirement on its
outstanding CBLO contracts. The funds representing withdrawal payments are
credited to concerned member’s current account with its designated Settlement
Bank on relative value date. The withdrawals are reflected in the Transaction
Reports and Holding Reports which are electronically delivered to the concerned
members along with other daily business reports.
ii)
Securities
Collateral
All security contributions towards
collaterals/margins in CBLO segment are held by CCIL in its dedicated CSGL
Account with RBI. All transfers of securities into and out of this CSGL Account
are carried out on a “Value Free of Payment” basis.
a)
Deposits
NDS
Members
NDS Members desirous of making
securities collateral/margin contributions are required to notify CCIL about
the same using a prescribed format. Such contributions are made from the
securities included in the list of specified securities eligible for securities
contributions. The list of Eligible Securities is notified by Risk Management
Department of CCIL from time to time.
Security contributions are received
and maintained in a CSGL Account with RBI. Deposit of Securities by Members is
carried out electronically using the Value Free Transfer functionality in RBI’s
NDS Application. The deposits are reflected in the Transaction Reports and
Holding Reports which are electronically delivered to the concerned members
along with other daily business reports.
Non-NDS
Members (Associate Members)
The process remains largely the same
as that applicable to NDS Members with the exception that the actual transfer
would be achieved electronically via NDS between the concerned Associate
Member’s designated Settlement Bank and CCIL.
b)
Withdrawals
NDS
Members
NDS Members seeking to withdraw
security from their collateral contribution are required to send a prior
written notice to CCIL using a prescribed format within cut-off timings
prescribed for the purpose. The withdrawal requests are processed by CCIL and
withdrawals approved after taking into account concerned member’s
collateral/margin requirement on its outstanding CBLO contracts. Security
withdrawals are achieved through Value Free Transfer functionality in RBI’s NDS
Application. The withdrawals are reflected in the Transaction Reports and
Holding Reports which are electronically delivered to the concerned members
along with other daily business reports.
Non-NDS
Members (Associate Members)
The process remains largely the same
on that applicable to NDS Members with the exception that the actual transfer
would be achieved electronically via NDS between CCIL and the concerned
Associate Member’s designated Settlement Bank.
c)
Substitution
Members are entitled to substitute
their securities holdings after giving prior notice as prescribed by CCIL.
Members are required to comply with relative deposit and withdrawal procedures
specified for the same.
Corporate Actions and Benefits
All corporate actions on member SGF holdings are serviced
through the electronic funds transfer mechanism of Reserve Bank of
India
. NDS Members receive credits into their
RBI Current Accounts while Non-NDS (Associate) Members receive credit in their
Current Accounts with the designated Settlement Bank.
a)
Interest
Payment on Cash Collaterals
Members are not entitled to any
interest on their collateral cash contributions on individual holdings up to a
certain minimum limit. Members holding cash collateral contribution in excess
of the prescribed minimum, are paid interest at quarterly rests (at the end of
every calendar quarter) on 90% of their average cash balances at a pre-defined
spread below the weighted average 91 Day Treasury Bills’ cut off yields at the
last three primary auctions held before the relevant interest payment date.
b)
Interest
Payment on Securities Collaterals
Periodic coupon payments in
respect of Members’ contributions of dated securities are received by CCIL from
RBI and passed on to concerned Members through EFT facility of RBI immediately
upon receipt of the same. NDS Members receive such credits in their RBI Current
Accounts while Non-NDS (Associate) Members receive relative funds in their
Current Accounts with their designated Settlement Bank.
List of Eligible Securities
CCIL prescribes a list of securities that are eligible for
collateral/margin contributions by members at any point of time. The Latest
Notification containing the current List of eligible securities can be viewed
under Notification.
Format of Notice of Deposit(NDS Members)
Format of Notice of Deposit(Non-NDS Members)
Format of Notice of Withdrawal(NDS Members)
Format of Notice of Withdrawal(Non-NDS Members)
Format of Notice of Substitution