Introduction:“Collateralized Borrowing and Lending Obligation (CBLO)", as the name implies facilitates in a collateralized environment, borrowing and lending of funds to market participants who are admitted as members in CBLO Segment. CBLO is conceived and developed by CCIL CBLO Dealing system, an anonymous order matching platform, is hosted and maintained by Clearcorp Dealing Systems (India) Ltd, a fully owned subsidiary of CCIL. CCIL becomes Central Counterparty to all CBLO trades and guarantees settlement of CBLO trades. The borrowing and / or lending in CBLO is facilitated for a maximum tenor of one year. CBLO is traded on Yield Time priority. The access to CBLO Dealing system for NDS Members is made available through INFINET and for non NDS Members through Internet. The Funds settlement of members in CBLO segment is achieved in the books of RBI for members who maintain an RBI Current Account and are allowed to operate that current account for settlement of their secondary market transactions. In respect of other members, CBLO Funds settlement is achieved in the books of Settlement Bank.
What does CBLO facilitate?
CBLO facilitates borrowing and lending for various tenors, from overnight up to a maximum of one year, in a fully collateralised environment.
Entities who qualify and fulfil the eligibility criteria laid down for membership of CBLO Segment can apply for becoming a member in CBLO Segment. The type of entity eligible for CBLO Membership are Nationalized Banks, Private Banks, Foreign Banks, Co-operative Banks, Financial Institutions, Insurance Companies, Mutual Funds, Primary Dealers, Bank cum Primary Dealers, NBFC, Corporate, Provident/ Pension Funds etc. Entities who have been granted CBLO Membership are classified based on their NDS Membership. CBLO Members who are also NDS Members are CBLO (NDS) Members and other CBLO Members are CBLO (Non NDS) Members or Associate Members.
Eligible securities are Central Government securities including Treasury Bills as specified by CCIL from time to time.