18:54 Sep 30, 2016
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1. What does CBLO facilitate?
2. Which type of entities is granted membership to CBLO segment?
3. What is the difference between an NDS Member and an Associate Member?
4. How can one obtain Membership of CCIL to CBLO segment?
5. How can one obtain Associate Membership of CCIL to CBLO segment?
6. Where does an Associate Member maintain its Current Account and GILT A/c?
7. What is CBLO Dealing System?
8. What are the modes of access to CBLO Dealing System?
9. What are the IT infrastructure requirements for CBLO Dealing System?
10. Who issues the Digital Certificates?
11. When can one start using the CBLO Dealing System?  
12. What are the charges payable for dealing and settlement in the CBLO Segment?
13.

What are the tenors for which borrowing and/ or lending can be done under  CBLO?

14. What are the settlement types that borrowings and/ or lending can be done in CBLO System?
15. What is the minimum and multiple order lot size in CBLO Normal market?
16. What is meant by Single Order Limit (SOL)?
17. How is the consideration amount for the deal computed?
18. What would be the status of the outstanding orders when a member logs out from the system? 
19. What happens to the outstanding orders if the PC on which CBLO Dealer Terminal is installed abruptly shuts down? 
20. What are CSV reports? When are they generated? Where can they be saved?  
21. Is a member required to manually initiate the generation of Deal Tickets?
22. Can a member generate a particular deal ticket more than once?  
23. Can deals be uploaded from CBLO Dealing System in to the proprietary system of the Member?  
24. Can a member view its limits i.e. Initial Margin and Borrow Limit on the CBLO Dealing System?
25. When does a member get suspended on the CBLO Dealing system?
26. What happens to a member’s outstanding orders in case of intra day deactivation due to limit exceeding?
27. Can a Member who has breached his limits during trading deposit additional margin intra day to trade further?
28. Can a Member square off the borrowing / lending position?
29. How does a member deposit securities? Can a member borrow against collateral deposited?
30. Can one withdraw / substitute the securities that have been deposited as Collateral?
32. Can one withdraw encumbered securities?
32. Is the title / ownership of the security transferred to lenders, as and when members borrow funds using the collaterals deposited by them?
33. How can a member contribute to Initial Margin?
34. How much Initial Margin is to be contributed by the members?
35. Can a Member deposit securities towards Initial Margin requirement?
36. Are members entitled to receive interest on the cash deposited towards Initial Margin?
37. What is Mark-to-Market Shortfall?
38. Where are the reports for CBLO segment made available?
39. Which Reports are made available to members by CCIL?



1.

What does CBLO facilitate?

 

CBLO facilitates, borrowing and lending of funds, fully collateralized by government Securities,  to market participants who are admitted as members in CBLO Segment.

 


2.

Which type of entities is granted membership to CBLO segment?

 

The entity type 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.


3.

What is the difference between an NDS Member and an Associate Member?

 

CBLO Members who are also NDS/ CBS Members and access CBLO Dealing system through INFINET are NDS Members and those who access CBLO Dealing system through Internet are Associate Members.


4.

How can one obtain Membership of CCIL to CBLO segment?

 

Eligible entities desirous of becoming Members to CBLO segment submit applications to CCIL and CCDS separately along with two cheques of Rs 25000/- each favoring “The Clearing Corporation of India Limited” and “ClearCorp Dealing Systems (India) Limited”, towards one time membership fee. As soon as the applications for Membership is approved by CCIL and CCDS, the concerned members are required to execute documents like Power of Attorney, mandate in the prescribed formats, which will be forwarded  to CCIL and CCDS. After completion of all formalities post approval of membership, the members can undertake CBLO transactions through the trading system offered by CCDS which would be settled through CCIL.


5.

How can one obtain Associate Membership of CCIL to CBLO segment?

  

Eligible entities desirous of becoming Members to CBLO segment submit applications to CCIL and CCDS seperately along with two cheques of Rs 25000/- each favoring “The Clearing Corporation of India Limited” and “ClearCorp Dealing Systems (India) Limited”, towards one time membership fee. As soon as the applications for Membership is approved by CCIL and CCDS, the concerned members are required to execute legal documents like Power of Attorney, mandate in the prescribed formats, which will be forwarded by CCIL and CCDS. After completion of all formalities post approval of membership, the members can undertake borrowing/ lending in CBLO Dealing System hosted by CCDS and these trades would be settled through CCIL.

 


6.

Where does an Associate Member maintain its Current Account and GILT A/c?

 

An Associate Member is required to maintain an exclusive Current Account for settlement of CBLO transactions with any one of the Settlement Banks designated by CCIL. An Associate Member can maintain its GILT a/c with any custodian bank.  

 


7. What is CBLO Dealing System?

CBLO Dealing System is an anonymous order matching System provided by CCDS to enable Members to borrow and lend funds. It also disseminates online information regarding deals concluded, volumes, rate etc., and such other notifications as relevant to borrowing and lending under CBLO by the members. 

8.

What are the modes of access to CBLO Dealing System?

 
Members can access CBLO Dealing System through INFINET connectivity whereas Associate Members can access CBLO Dealing System through internet.


9.

What are the IT infrastructure requirements for CBLO Dealing System?

 

The IT Infrastructure requirements for CBLO Dealing System are given in CCIL website under sub menu ‘IT Infrastructure’ of CBLO.

 


10.

Who issues the Digital Certificates?

 

Associate members can access Internet based CBLO dealing system with the help of the Digital Certificate. The Associate Member has to arrange for obtaining such Digital Certificate immediately after completing membership formalities. The Associate member has to obtain the requisite Digital Certificate and submit the details it to Clearcorp for configuration.

11.

When can one start using the CBLO Dealing System?

 

An Entity shall be provided access to the CBLO Dealing System only after cash deposit of Rs.1 lakh towards Initial Margin is received and his Membership to CBLO Segment is approved by Clearcorp and CCIL. An entity approved as a CBLO Member shall be provided a Member ID, Member Number and two User names which are unique within the member. The Member may request for customized User names and on receiving in appropriate format, the same shall be created by CBLO Admin. The User can access the CBLO Dealing System by logging in with User name (ID) and password communicated to him. The system would as part of password policy implemented by Clearcorp / CCIL, prompt the user to change the password immediately on his logging in to the system. 


12.

What are the charges payable for dealing and settlement in the CBLO Segment? 

 

The Trading and Settlement charges payable by member/s in CBLO Segment are available under notifications.


13.

What are the tenors for which borrowing and/ or lending can be done under  CBLO?

 

Currently the borrowing/ lending facilitated from overnight upto three months.  


14.

What are the settlement types that borrowings and/ or lending can be done in CBLO System?

 

The borrowing and/ or lendings can be done for settlement type T+0 and T+1. 


15.

What is the minimum and multiple order lot size in CBLO Normal market?


The minimum lot size is the order size quantity below which system would not accept orders and multiple lot size is the lot size in which the system would accept orders, if the orders are above the minimum lot size. The minimum and multiple lot size for borrowing and lending under  CBLO is Rs.5 lakhs. 


16.

What is meant by Single Order Limit (SOL)?

 

Single Order Limit is the maximum amount per order that can be entered by a User within a member and it is applicable to each member of the CBLO Segment. 

 


17. How is the consideration amount for the deal computed? 

The consideration amount for the deal is computed based on the yield at which the deal is concluded based on the following formula. Consideration amount =Face Value/{1+ (yield/36500*holding period in days)}

18. What would be the status of the outstanding orders when a member logs out from the system?

When a Member logs off the system, the member is given an option to either cancel all outstanding orders or to retain the orders in the system.

19. What happens to the outstanding orders if the PC on which CBLO Dealer Terminal is installed abruptly shuts down?

The outstanding orders of the dealer, if any, remain in the order book.

20.

What are CSV reports? When are they generated? Where can they be saved?


CSV stands for Comma Separated Value. A .CSV is generated every time a print command is triggered for a Deal ticket or any report from Dealer Work Station(DWS). A .CSV is generated when a deal ticket automatically printed on conclusion of a trade. .CSVs is normally stored in the C drive of the PC wherein the DWS is logged in. However, facility is provided for members to configure the path to any folder in a common drive and once configured, all .CSVs will get stored automatically in the designated folder.


21.

Is a member required to manually initiate the generation of Deal Tickets?


Deal Tickets are automatically generated by the CBLO Dealing system after every trade and a hard copy is printed by the printer configured to the PC.


22.

Can a member generate a particular deal ticket more than once?

A member can reprint a deal ticket any number of times by selecting the particular trade in the Previous Trades Query and clicking on PRINT. Members can also generate a summary report of all his trades by loading the Previous Trades Query and clicking PRINT.


23.

Can deals be uploaded from CBLO Dealing System in to the proprietary system of the Member?


Deals done on CBLO Dealing System cannot be directly uploaded in to the proprietary system of the Member directly from the database. The .CSVs are provided to Members precisely for this purpose. The .CSVs saved in the Member’s a folder in local or common drive can be utilised by the Member to upload in to their proprietary system through a utility developed at Member end for converting the .CSVs in to formats compatible with the formats in the Member’s proprietary system. 


24.

Can a member view its limits i.e. Initial Margin and Borrow Limit on the CBLO Dealing System?


Yes. Members can view their Available Trading Limits for the day, i.e., Available Initial Margin and Available Borrowing Limit on the CBLO Dealing System, in the ‘Check Limits’ screen under ‘Basic Data Query’. The member can also view his utilization after every trade and the updated status of his balance limit. Also, in case of intra-day deposits and withdrawals of collaterals the trading limits displayed in the screen are updated accordingly.


25.

When does a member get suspended on the CBLO Dealing system?


A member gets suspended on the CBLO Dealing system in automatically when the Initial Margin available for CBLO segment is insufficient to cover his traded positions.
A member may also be suspended by Clearcorp / CCIL for any reason which in the opinion of Clearcorp / CCIL warrants deactivation.


26.

What happens to a member’s outstanding orders in case of intra day deactivation due to limit exceeding?

 

On deactivation, all outstanding orders of that member automatically stand cancelled.


27.

Can a Member who has breached his limits during trading deposit additional margin intra day to trade further?

 

Yes, a member can deposit additional margin intra-day so as to cover his breached limits and trade further. A member is automatically suspended on the CBLO Dealing System in case Initial Margin limit is breached. On deposit of additional collaterals intra day towards Initial Margin, before close of the trading session, such that the utilization is within the Initial Margin limit, the member is automatically re-activated on the CBLO Dealing System.


28.

Can a Member square off the borrowing / lending position?

 

Yes. The members can square off their borrowing/ lending position bydoing a lending/ borrowing transaction in the same CBLO.

 


29.

How does a member deposit securities? Can a member borrow against collateral deposited?

 

Members desirous of depositing securities are required to do so through ‘e-notice’ facility, the link to which is provided on CCIL’s web site. The transfer of securities through Value Free Transfer module of NDS from the Member’s SGL Account to the CSGL Account maintained by CCIL for CBLO Segment followed immediately by notice of intent in the prescribed format in ‘e notice’ is the process to be followed for deposit of securities for CBLO segment. In case of a CBLO Member not having an SGL account with RBI, such member need to advise their Custodian Bank with whom they maintain GILT account to transfer securities to CSGL account of CCIL. The ‘e notice’ for such deposits shall be given by the CBLO member who does not maintain SGL account with RBI. However, such ‘e notice’ shall be received through the Settlement Bank.
Members can deposit securities with CCIL during the day up to close of Trading session . The Borrowing limits are updated instantaneously on deposit of eligible securities in CBLO segment by a member following the extant process including ‘e notice’ and its confirmation at our end in ‘e notice’ as to the receipt of such securities in our CSGL account for CBLO segment. The limits that would get updated for borrowing are based on the MTM values of the securities deposits and haircut imposed on such securities.


30.

Can one withdraw / substitute the securities that have been deposited as Collateral?

  

Yes. Members can withdraw the unencumbered portion of securities deposited and also substitute securities that have been deposited as collateral either intra-day or at EOD for next day value. (Note: Please refer to ‘Collaterals and Margins’ section for further clarifications.)  


31.

Can one withdraw encumbered securities?

 

No. Securities blocked against outstanding borrowing cannot be withdrawn. The Withdrawal Request for such securities will be rejected by CCIL. However, members may withdraw such securities after depositing other eligible securities for the equivalent value.

 


32.

Is the title / ownership of the security transferred to lenders, as and when members borrow funds using the collaterals deposited by them?

 

The title / ownership of the securities remain with the borrowing members and the same are not transferred to lenders. However, the securities are blocked in the CSGL account to the extent of borrowing obligation till repayment of borrowing is completed. 


33.

How can a member contribute to Initial Margin?

 

Collateral contribution in cash shall be reckoned as Initial Margin. Members desirous of depositing Initial margin (cash) need affect a remittance to CCIL RTGS account and also communicate intent of such transfer giving details through ‘e notice’. The request received through e’ notice’ shall be accepted / approved by CCIL in ‘e notice’ on citing the funds in our RTGS account and on such approval / acceptance, the money transferred shall be reckoned as Initial Margin. (Please refer to FAQs under ‘e-Notice’ section for further clarification). Members settling through settlement bank can deposit amount in CCIL’s current account with settlement bank.


34.

How much Initial Margin is to be contributed by the members?


Members and Associate members are required to deposit a minimum of Rs.1 lakh towards Initial margin. The minimum Initial margin deposit has to be strictly in cash only. Over and above this the Members/Associate members are required to deposit initial margin in advance at the rate of 0.50% of their trade volume.


35.

Can a Member deposit securities towards Initial Margin requirement?


Yes. A CBLO member has to deposit a minimum cash of Rs.1lakh towards Initial Margin. Members may over and above the minimum cash, contribute eligible securities towards Borrowing Limit(BL) and the BL to the extent unutilized will be reckoned for Initial Margin requirement.


36.

Are members entitled to receive interest on the cash deposited towards Initial Margin?

 

Members are entitled to receive interest at quarterly rests (at the end of every quarter) on the maximum daily utilization over and above minimum Initial Margin (cash deposit) stipulated for the segment. The minimum cash deposit stipulated for the time being in force is Rs.1 lakh.

 


37.

What is Mark-to-Market Shortfall?


The eligible securities deposited as collateral with CCIL for availing limits for CBLO Dealing, are subjected to Mark-to-Market valuation intra day or end of day on a daily basis as part of the EOD processes. When the value of the underlying collateral declines on account of mark-to-market valuation such that it is insufficient to cover the amount borrowed by the member in the CBLO segment, the difference between mark to market values of such collaterals and the amount borrowed is construed as mark-to-market shortfall occurs.


38. Where are the reports for CBLO segment made available?

All reports, both trading and settlement reports for CBLO segment are made available through the CCIL Report.

39.

Which Reports are made available to members by CCIL?

 

 The CBLO reports made available to members in Report Server on daily basis are:
a) Daily Transactions Report gives details of all the trades done by a Member for the day in Normal Market;
b) Report for Funds Settlement;
c) Account Balance Report giving CBLO and Borrowing Limit balances;
d) Consolidated Funds obligation / settlement report;
e) Trade Loss Report;
f) Order cancellation Report; in the event the Member has requested CCIL to cancel its orders.
g) Intra-day Initial Margin Exceeding Report. In the event of CBLO and Funds shortage the following Reports are made available;
h) CBLO Shortfall and Replenishment Report;
i) CBLO Shortfall Penalty Report;
j) CBLO Allocation Compensation Report;
k) Fund Replenishment Report;
l) CBLO Shortfall Penalty Report;
m) Summary of Funds Settlement for CBLO & Securities segment.


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