Members of CCIL’s Securities Segment are required to deposit their margin contributions into CCIL’s Settlement Guarantee Fund (SGF) maintained for this business segment. Individual member contributions are a function of their outstanding trade obligations based on the types of trades, securities involved and value dates of settlement. Members are expected to always maintain adequate balances in their SGF to cover their unsettled trade exposures. Margins are required to be maintained by every member for their own trades as well as trades reported by them on behalf of their constituents.

SGF is received in the form of both cash and securities. SGF cash contributions are received in CCIL’s Current Account maintained with Reserve Bank of India Mumbai. SGF security contributions are received and maintained in CCIL’s Constituent SGL (CSGL) Account maintained with Reserve Bank of India, Mumbai

SGF is received in the form of cash and securities. Members are required to maintain a minimum of 10% of their total margin requirements in the form of cash contributions to SGF. Members have the option to maintain their entire SGF contribution in the form of Cash.

The balance SGF contribution can be held in the form of specified GOI dated securities and/or Treasury Bills from amongst a list of eligible securities notified by CCIL from time to time.

Members of CCIL’s Securities Segment are currently required to maintain a ratio of 1:9 in respect of their cash: securities SGF contributions in relation to their margin requirements.

SGF - Cash

Members desirous of making cash contributions to their SGF are required to intimate CCIL about the same using a prescribed format. Cash contributions from members are received by means of their cheques drawn on their Current Account with Reserve Bank of India, Mumbai. These are expected to be held in multiples of INR 100,000.00. Relative cheques are deposited at CCIL counters within cut-off timings prescribed for the purpose. Member SGF balances are updated by CCIL upon receipt of relative funds into its Current Account with RBI. Transaction Reports and Holding Reports are electronically delivered to the concerned members along with other daily business reports.

Members seeking to withdraw from their SGF Cash contributions are required to send a prior written notice to CCIL about the same using a prescribed format within cut-off timings prescribed for the purpose. Withdrawal requests are processed and permitted after taking into account concerned member’s outstanding trade obligation. Withdrawal payments are made by means of cheques drawn on its Current Account with Reserve Bank of India, Mumbai. Relative cheques are delivered to concerned members on relative value date at CCIL counters after their SGF Cash Balances have been suitably reduced. Transaction Reports and Holding Reports are electronically delivered to the concerned members along with other daily business reports.

SGF – Securities

All transfers of securities to and/or from CCIL by its members are carried out on a “Value Free of Payment” basis.

Members desirous of making securities contributions to their SGF are required to notify CCIL about the same using a prescribed format. Security contributions are received and maintained in a separate CSGL Account with RBI. SGF security contributions are made from among the list of specified securities eligible for margin contributions. The list of Eligible Securities is decided by Risk Management Department.

Deposit of Securities by Members into SGF is carried out electronically using the Value Free Transfer functionality in RBI’s Negotiated Dealing System (NDS). A securities transfer request is created and approved by the member. The same is confirmed by CCIL and forwarded to RBI for authorization and settlement. Members have to ensure adherence to cut off timings prescribed by RBI for the purpose. Member SGF balances are updated by CCIL upon receipt of relative securities into its CSGL Account with Reserve Bank of India. Transaction Reports and Holding Reports are electronically delivered to the concerned members along with other daily business reports.

Members seeking withdrawal from their SGF contributions are required to send a prior written notice to CCIL about the same using a prescribed format within cut-off timings prescribed for the purpose. Withdrawals requests are processed and permitted after taking into account concerned members’ outstanding trade obligation. Security withdrawals are effected through Value Free Transfer functionality in NDS. A securities transfer request is created and approved by CCIL. The same is confirmed by the concerned member and forwarded to RBI for authorization and settlement. Securities are transferred to the Proprietary SGL Accounts of members maintained with RBI Mumbai on relative value date after their SGF security balances have been suitably reduced. Transaction Reports and Holding Reports are electronically delivered to the concerned members along with other daily business reports.

Members are entitled to substitute their SGF holdings after giving prior notice as prescribed by CCIL. Depending on the type of substitution viz., security for cash, cash for security or security for security, members are required to comply with relative deposit and withdrawal procedures specified for the same. Transaction Reports and Holding Reports are electronically delivered to the concerned members along with other daily business reports upon completion of the process.

All corporate actions on member SGF holdings are serviced through the electronic funds transfer mechanism of Reserve Bank of India. Relative funds are remitted to the Current Accounts of concerned members with separate individual electronic advices to members

SGF – Cash – Interest Payment

Members are not entitled to any interest on their cash contributions to SGF, which is expected to be at least 10% of their total margin requirements.

In respect of members holding their entire SGF contribution in the form of cash, CCIL pays interest to such members at quarterly rests (at the end of every calendar quarter) on 90% of their average cash balances during the relative period @ 100 basis points below the weighted average 91 Day Treasury Bills’ cut off yields at the last three primary auctions held before the relevant interest payment date. The benchmark instrument to which such interest is pegged as well as spread between the yield on the benchmark instrument and the interest rate paid by CCIL may be changed at the sole discretion of CCIL from time to time.

SGF – Securities – Interest Payment

Periodic coupon payments received in respect of Members’ SGF security contributions (held in the form of dated securities) are passed on to concerned Members by CCIL immediately upon receipt of relative interest from Reserve Bank of India.

SGF – Securities – Redemptions

Redemption proceeds of matured securities are treated as concerned members’ additional cash contribution to SGF

CCIL prescribes a list of securities that are eligible for margin contributions by members to their SGF. This list is periodically reviewed based on trading volumes, tenor, market volatility etc. CCIL values member security holdings in SGF at prescribed intervals and/or at every instance of SGF deposit/withdrawal by a member

Latest Notification containing current List of eligible securities