Introduction | Composition | Work Process | Corporate Actions and Benefits | List of Eligible Securities | Link for eNotice and format of Notice of Deposit and Withdrawal |
With a view to meet losses arising out of members’ Default CCIL has
instituted following six default funds
Though the default funds belong to distinct business segments the
composition, work flow process, interest payment rules, etc are identical for
all default funds.
The default funds are established to meet
losses arising out of members’ default.
The purpose and process of default funds computation is detailed under Risk
required to contribute the amount as notified by CCIL to the respective default
fund. The DF contributions are maintained distinctly however some benefit shall
available to members in terms of Default Fund – Optimisation process.
Default Fund contribution is received from members in Cash (INR) and
eligible government of India securities / treasury bills. Members have the
option to maintain their entire SGF contribution in the form of Cash.
The cash : securities ratio towards default funds requirement is 5:95
i.e. minimum 5% of default funds requirement needs to be maintained in cash.
Members of respective business segment are required to maintain minimum
collateral contribution as notified by CCIL towards the concerned default fund.
The securities towards Default Funds are
accepted in CCIL’s Constituent Subsidiary general Ledger account maintained
with Public Debt Office of Reserve Bank of India. The securities are
transferred from members’ SGL / CSGL account to the above referred CSGL Account
of CCIL on a Value Free basis using the eKuber System of Reserve Bank of India.
The cash is transferred by members to CCIL’s
bank account wherein the concerned members settles the funds obligations.
Members settling at RBI transfer the cash to CCIL’s RTGS Settlement Account
whereas the members transfer the cash contribution to CCIL’s account with
respective Settlement bank.
The refund of securities / cash are effected
by CCIL from its CSGL account / RTGS Settlement account with RBI or its funds
account with settlement banks.
Members desirous of making cash / securities contributions to DFs are
required to initiate a value free transfer / funds transfer and intimate CCIL
about the same using the eNotice System or a physical notice of deposit in a
prescribed format (incase of non-availability of eNotice) within the cut off
time prescribed for the purpose.
The URL for accessing eNotice System is
Members desirous of making cash / securities withdrawal from DFs are required to initiate a withdrawal
request using eNotice System ot a physical notice of withdrawal (incase of
non-availability of eNotice) within the cut off time prescribed for the
purpose. The securities refund can be effected on the day of notice or Notice +
business 1 day as requested by member. All cash withdrawals are on Notice +
business1 day basis.
CCIL has issued detailed Collateral Work Flow process for DFs and the
same is amended periodically. The latest Default Fund related Notifications are
available under tab for each business segment under URL
All corporate actions on member DF 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
DF – Cash – Interest Payment
Members are entitled for interest on their cash collateral contribution
utilised towards margin requirement in each of the segments, based on the
applicable interest payment rules. The rules for such interest payment are laid
down as per CCIL’s Regulations and notifications issued in this regard. The
interest is paid on a quarterly basis at a rate notified by CCIL.
Part V of the above notification(s) covers interest payment process towards
DF– Securities – Interest Payment
Periodic coupon payments received in respect of Members’ DF
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. The interest is paid to members’ RTGS Settlement account
or current account with settlement bank as recorded with CCIL.
DF – Securities – Redemptions
Redemption proceeds of matured securities / treasury bills are treated as concerned members’ additional
cash contribution to DF.
List of Eligible Securities