Borrowing Limit and Initial Margin
Borrowing limit for the members is fixed everyday after marking to market and applying appropriate hair-cuts on the securities deposited in the CSGL account. The post hair-cut Mark-to-Market value after adjusting for the amounts already borrowed by the members is the borrowing limit, which, in effect, denotes the drawing power up to which the members can borrow funds. Members are required to deposit initial margin generally in the form of Cash (minimum Rs.1 lac) and Government Securities. Initial margin is computed at the rate of 0.50% on the total amount borrowed/lent by the members. Intra day BL/IM enhancements facility is also provided to CBLO members. Members can also withdraw unencumbered portion of BL intra day. However, intra day cash withdrawal is not possible.

Auction Market
Auction market is available only to NDS Members for overnight borrowing and settlement on T+0 basis. Access to auction market is not available to Associate members. Based on the borrowing limits fixed by CCIL, members submit their borrowing requests to CCDS through CBLO System indicating clearly the amount, maturity and the cap rate before commencement of the auction session. i.e. from 10.30 A.M. to 11.00 A.M. Members are permitted to borrow and lend funds on overnight basis indicating the cap rate/s which is/are linked to CCBOR (a cap rate is the maximum rate up to which the borrower is willing to pay). Currently the permissible caps are:

a) CCBOR

Normal Market
Normal Market is available for all members (including Associate Members) for settlement on T+0 and T+1 basis. The Normal market can be accessed for borrowing funds to the extent of their available borrowing limit, besides members can sell CBLOs held by them to meet their funds requirement instead of holding till maturity. Members intending to sell CBLOs (borrow funds) place their offers directly through order entry form on the CBLO System indicating the amount and rate for a specific CBLO. Like-wise, members willing to buy CBLOs (lend funds) place their bids through order entry form specifying the amount and rate for a particular CBLO. The matching of bids and offers takes place on Best Yield – Time Priority basis. Normal market session for NDS Members is currently open from 9.00 A.M. to 4.00 P.M for T+0 and 9.00 A.M to 5.30 P.M for T+1 Settlement on weekdays and on Saturdays from 9.00 A.M. to 2.00 P.M for both Settlements. Similarly, for Associate Members, the normal market session is open from 9.00A.M. To 2.30 P.M. for T+0 and 9.00 A.M. to 5.30 P.M. for T+1 Settlement on weekdays and from 9.00 A.M. to 10.30 A.M. for T+0 and 9.00A.M. to 2.00 P.M for T+1 settlement on Saturdays.