Borrowing Limit and Initial Margin
Borrowing limit for the members is derived based eligible securities deposited by member in CBLO segment, multiplied by mark to market prices, less hair cut applicable on respective security. The members can borrow up a maximum of Borrowing Limit including all amounts which are borrowed and outstanding at that point in time. Members are required to deposit initial margin in the form of Cash (minimum Rs.1 lac). Initial margin is computed at the rate of 0.50% on the total amount borrowed/lent by the members. CBLO members may seek intraday enhancement of BL/ IM by depositing additional collaterals/ Government Securities/ Cash. Similarly, Members may withdraw securities intraday from CBLO segment provided they are unencumbered. However, one day prior notice is required for cash withdrawal.
Borrowing and Lending under CBLO
Borrowing and lending under CBLO can be done by both CBLO (NDS) members and Associate members. The access to CBLO (NDS) members is made available through INFINET whereas Associate members are provided access through Internet. Members have to deposit Cash and/ or eligible securities prior to starting CBLO Dealing operations. The limits are made available to members based on cash / eligible securities deposited with CCIL for that purpose in CBLO Segment. CBLO Members can place borrow / lend orders till the closure of market hours for T+0 settlement type for the same day settlement and till closure of market hours for T+1 settlement type for settlement on next business day. The date for repayment of borrowing/ receipt of lending is identified by the nomenclature of CBLO itself which captures as part of the description the repayment of borrowing/ receipt of lending date. The borrowing and lending orders match on Yield Time priority. The Borrow limit and Initial Margin are blocked on post trade basis and hence the onus is on the members to ensure prior to placing the order that sufficient BL and IM are available. For a few members Borrow Limit and Initial Margin are blocked at the time of placing order in the system.
CBLO order matching system is available for all members (including Associate Members) for settlement on T+0 and T+1 basis. The CBLO Borrowing / Lending timing for settlement type T+0 and T+1 for various business days shall be as decided by Clearcorp Dealing Systems (India) Ltd. and notified from time to time.