Introduction | Composition | Work Process | Corporate Actions and Benefits | List of Eligible

Securities | Notice of Deposit (NDS Members) | Notice of Deposit (Non-NDS Members) | Notice of

Withdrawal (NDS Members) | Notice of Withdrawal (Non-NDS Members) | Notice of Substitution

Introduction

Members of CBLO Segment are required to maintain collateral/margin contributions with CCIL to cover their outstanding borrowing and/or lending obligations. The kind of membership i.e. Member(Settling funds obligation at RBI) , MMSB (multi Modal Settlement Bank) member (settling funds obligation at Settlement Bank) and Associate member (settling funds obligation at Settlement bank and accessing the CBLO Dealing System through Internet) determines collateral work flow process applicable to the respective member.

Members can contribute securities and / or cash towards their collateral / margin contributions for operating in the CBLO segment. Minimum cash collateral contribution of Rs. 1 Lac needs to be maintained by a member at all times during currency of their membership to CCIL’s CBLO Segment.

In respect of Members settling funds obligation at RBI, cash collateral/margin contributions for CBLO Segment are received in CCIL’s RTGS Settlement Account with RBI. Other members viz. MMSB and Associate members are required to credit their cash collateral / margin contributions to  CCIL’s Cuurent Account maintained with their respective settlement bank(s).

Security collateral/margin contributions, in respect of all members, are received and maintained in CCIL’s dedicated Constituent SGL (CSGL) Account with RBI.

i)  Cash Collaterals

a)  Deposits

Members-Settling Funds obligation at RBI

Members desirous of making cash collateral / margin contributions are required to intimate CCIL about the same using the eNotice System or a physical notice of deposit in a prescribed format within the cut off time prescribed for the purpose. Cash contributions from members are received through Reserve Bank of India’s Real Time Gross Settlement (RTGS) system by credit to CCIL’s RTGS Settlement Account maintained with Reserve Bank of India. Member balances are updated by CCIL upon receipt of relative funds into its RTGS Settlement Account with RBI. Updated Transaction Reports and Holding Reports are available for download on CCIL’s Reports Browser.

MMSB and Associate Members – Settling Funds obligation at Settlement Bank

MMSB and Associate Members of CBLO Segment desirous of making cash collateral/margin contributions are required to intimate CCIL about the same using the eNotice System or a physical notice of deposit in a prescribed format within the cut off time prescribed for the purpose.  Cash contributions from such Members are received in CCIL’s Current Account with the respective Settlement Bank. Relative fund transfer to CCIL has to be ensured by the concerned 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 and the same are available for download on CCIL’s Reports Browser.

b)  Withdrawals

Members – Settling Funds Obligation at RBI

Members of CBLO segment seeking to withdraw funds from their collateral/margin contribution are required to intimate CCIL about the same using the eNotice System or a physical notice of withdrawal in a prescribed format at least one business day in advance within the cut-off timings prescribed 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. Withdrawal payments are made by credit to concerned members RTGS Settlement / Current Account maintained with RBI on relative value date of payment. Updated Transaction Reports and Holding Reports are available for download on CCIL’s Reports Browser.

MMSB and Associate Members – Settling Funds obligation at Settlement Bank

MMSB and Associate members of CBLO segment seeking to withdraw cash from their collateral/margin contribution are required to intimate CCIL about the same using the eNotice System or a physical notice of withdrawal in a prescribed format at least one business day in advance within the cut-off timings prescribed 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 Settlement Bank on relative value date. Updated Transaction Reports and Holding Reports are available for download on CCIL’s Reports Browser.

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

Members- Maintaining SGL Account with Reserve Bank of India

Members desirous of making securities collateral/margin contributions are required to intimate CCIL about the same using the eNotice System or a physical notice of deposit in a prescribed format within the cut off time prescribed for the purpose. 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 and the same are available for download on CCIL’s Reports Browser.

Associate Members – Accessing CBLO Dealing System through Internet

The process remains largely the same as that applicable to Members maintaining SGL Account with RBI with the exception that the actual transfer would be achieved electronically via NDS between the concerned Associate Member’s  Settlement Bank / Custodian and CCIL. The notice of deposit shall be routed through the Settlement Bank / Custodian and relevant details shall be updated in the Notice of Deposit by the Settlement Bank / Custodian. Updated Transaction Reports and Holding Reports are available for download by associate Member on CCIL’s Reports Browser.

b)  Withdrawals

Members – Maintaining SGL Account with Reserve Bank of India

Members seeking to withdraw security from their collateral contribution are required to intimate CCIL about the same using the eNotice System or a physical notice of withdrawal in a prescribed format within the cut-off timings prescribed for the purpose. The withdrawal requests are processed by CCIL based on Value Date of Payment 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 and the same are available for download on CCIL’s Reports Browser.

Associate Members – Accessing the CBLO Dealing System through Internet

The process remains largely the same as applicable to Members maintaining SGL Account with RBI with the exception that the actual transfer would be achieved electronically via NDS between CCIL and the concerned Associate Member’s designated Settlement Bank/ Custodian. Updated Transaction Reports and Holding Reports are available for download by associate Member on CCIL’s Reports Browser.

All corporate actions on member’s Cash and Securities holdings are serviced through the RTGS System of Reserve Bank of India and net banking system(s) of settlement banks. Relative funds are remitted to the RTGS Settlement / Current Account of concerned members with separate individual electronic advices to members.

a) Interest Payment on Cash Collaterals

Interest is paid to members at quarterly rest on maximum daily utilisation of cash collateral maintained by member towards Initial Margin requirement for CBLO Segment.  The minimum threshold contribution as prescribed by CCIL is excluded from such computation of amount eligible for interest. Interest on such utilisation is payable at a rate not exceeding 100 basis points  lower than the weighted average of 91 days treasury bills cut off yields at the last three 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 RTGS System of Reserve Bank of India and net banking system(s) of settlement banks. Relative funds are remitted to the RTGS Settlement / Current Account of concerned members with separate individual electronic advices to members.

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 on CCIL WEB SITE.