14:33 Nov 17, 2018
CCILCCIL > Collateral & Funds > Triparty Repo Collateral
 
Introduction

 

Members of Securities Segment availing clearing and settlement services of CCIL for Tri party Repo trades,  are required to contribute securities and funds towards Tri party Repo collateral as per the work flow process notified from time to time. The Triparty Repo Collateral contributions in cash shall be considered as   Initial Margin and eligible security contributions shall be considered for Borrowing Limit. Members of Securities Segment  settle their funds obligation at Reserve Bank of India or Designated Settlement Bank (DSB). The collateral work flow process notified and applicable to Members, are where funds are settled and also whether such entity is an SGL account holder or Gilt Account Holder (GAH) and if GAH, then whether the Gilt Account is maintained with DSB or any other CSGL Service provider.

 

Members are also required to contribute Cash and / or eligible securities towards Default Fund established for Tri party Repo as per the work flow process notified by CCIL from time to time

 

 
 
Composition

 

Members may contribute securities and cash towards Triparty Repo collateral.  A Member admitted to Securities Segment is required to maintain a minimum cash collateral contribution of Rs. 1 Lac towards Triparty Repo collateral at all times.  

 

In respect of Members settling funds obligation at RBI, cash collateral are received in CCIL’s RTGS Settlement Account with RBI. Members settling funds obligation at Settlement Bank are required to credit their cash collateral contributions to CCIL’s  Current Account maintained with the respective Settlement bank(s).

 

Security(ies)  contributions towards Triparty Repo, in respect of all members, are received and maintained in CCIL’s dedicated Constituent SGL (CSGL) Account with PDO, RBI.

 

 
 
Work Process

 

The workflow process for deposit of Cash and Securities towards Triparty Repo Collateral and Triparty Repo Default Fund, shall be as notified by CCIL from time to time. The workflow process notified by CCIL may be different for Members, settling funds at RBI/Settlement Bank (DSB) and maintaining SGL Account at RBI and also for Associate Members who maintain their current account with DSB and Gilt Account with DSB or other CSGL service provider. Similarly, separate workflow process towards Default Fund Triparty Repo is notified to members.

 

 
 
Corporate Actions and Benefits

 

All corporate actions on member’s Cash and Securities holdings 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 members towards Initial Margin requirement for Triparty Repo transactions.  The minimum threshold contribution as prescribed by CCIL is excluded from such computation of amount eligible for interest. The rate of interest shall be as notified by CCIL.  

 

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 Members contributing such  securities,  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. The corporate action on securities are paid to the contributor of securities

 

 

 
 
List of Eligible Securities

 

 

The list of securities eligible for contributions towards Triparty Repo Collateral and TPR Default Fund, shall be as notified by CCIL from time to time.

 

Collateral Holding and Transaction Statements

 

The Transaction Reports and Holding Reports are available for download by all on CCIL’s Reports Browser. The reports will reflect the positon arising out of deposit of securities, credit of securities to lenders gilt account of their lending transactions, withdrawal of securities and debit of securities on account of borrowing.

 

Default Fund

 

Members are required to contribute cash / eligible securities towards TPR Default Fund. The collateral work flow process for deposit and withdrawal of Funds / Securities shall be as notified by CCIL from time to time. The work flow process, for corporate action processing for both, coupon received on securities and interest on cash contributed to TPR Default Fund, is similar to the work flow process enumerated for corporate actions on contributions to Triparty Repo Collateral.

 

 

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