18:15 Nov 15, 2018
CCILCCIL > FAQ > Collateral & Funds
1. What is Settlement Guarantee Fund (SGF)?
2. Can the Securities Segment - SGF comprise of only securities?
3. Can the SGF comprise of only Cash?
4. What about the margin for Securities Segment - TripartyRepo?
5.  What are the securities eligible for contribution to SGF and Triparty Repo  Collateral?
6. How can a member inform CCIL about Deposits / Withdrawals to / from SGF and Triparty Repo  Collateral / Margin?
7. How will the transfer of Securities take place in case of Deposits to SGF and Triparty Repo  Collateral / Margin?
8. How will the transfer of Securities take place in case of Withdrawal from SGF and Triparty Repo  Collateral / Margin?
9. How will transfer of Cash component of SGF and Triparty Repo Margin take place?
10. Will the members be eligible for corporate actions and benefits on the securities contributed to SGF and Triparty Repo  collateral / margin?
11. Will the member be eligible for interest on the cash contributions to the SGF and  Triparty Repo Margins?
12. How are SGF contributions received for CCIL’s Forex Segment?
13. How are SGF balances refunded to members of CCIL’s Forex Segment?
14. Are members of CCIL’s Forex Segment entitled to any interest on their SGF contributions?
15. How can the members obtain/view their holding statements, reports etc.?
16. How  the securities settlement will happen in respect of Triparty Repo trades ?
17. Where are the details of securities debit and credit to the member’s Gilt Account  are  provided?
18. Can the Lender of funds in Triparty Repo withdraw the security received  towards its lending in its Gilt Account?
19. Can the Borrower of Funds in Triparty Repo substitute the security debited to its Gilt Account ?
20. Is a Lender receiving security entitled to coupon benefit on the securities credited on account of their lending?



1. What is Settlement Guarantee Fund (SGF)?

The Securities Segment margin contributions of Members in cash and securities, are maintained in Settlement Guarantee Fund (SGF). The margin contributions of Members, shall be utilised as provided in Securities Segment Regulations and also as provided in the Regulations of Segments wherein CCIL provides guaranteed settlement.

The Forex Settlement Segment margin contributions in USD are also  maintained in a separate SGF. Members shall contribute the margin requirement in US Dollars as notified by CCIL from time to time
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2. Can the Securities Segment - SGF comprise of only securities?

Members may contribute cash and eligible securities towards Securities Segment – SGF. However, members are requirement to maintain at least 10 % of their margin requirement towards Securities Segment in Cash (INR). The minimum cash requirement is at least 5%  of members’  margin obligation in Forex Forward and Rupee Derivatives (Guaranteed Settlement) Segment.


3. Can the SGF comprise of only Cash?


Yes, a member can contribute its entire Securities Segment - SGF contribution by way of cash (INR).


4. What about the margin for Securities Segment - Triparty Repo?

Members  of Securities Segment participating in Triparty Repo transactions, are required to contribute towards Triparty Repo Collateral  in the form of Cash and eligible  securities as notified by CCIL from time to time.  Borrowing Limits shall be based on eligible securities  contributions and cash contributed shall be considered as Initial Margin.


5. What are the securities eligible for contribution to SGF and Triparty Repo  Collateral

The lists of securities that are eligible for  contributions by members towards Securities Segment SGF and Tri party Repo shall be separately notified by CCIL from time to time. The notification(s) in this regard can be downloaded from risk management section on the website.

6. How can a member inform CCIL about Deposits / Withdrawals to / from SGF and Triparty Repo  Collateral / Margin?

Any member desirous of making deposits / withdrawals is required to notify CCIL suitably using the eNotice System within the specified cut off timings. The relevant work flow process for deposit and withdrawal of securities for SGL and Triparty Repo Collateral, is available under notifications – Securities Segment in CCIL website.


7. How will the transfer of Securities take place in case of Deposits to SGF and Triparty Repo  Collateral / Margin?

Transfer of securities from and/ to SGF / Triparty Repo Collateral is carried out on a “Value Free of Transfer” mode in ekuber system of RBI. Deposit of securities by members is carried out electronically using the relative functionality in RBI’s eKuber system. A securities transfer request is created by the Member/ CSGL Service provider for the Member,  is confirmed by CCIL in ekuber . Upon confirmation by CCIL  and successful execution on eKuber , securities are transferred from SGL / CSGL Account of member / CSGL Account Holder to CCIL’s CSGL Account(s) at RBI PDO.


8. How will the transfer of Securities take place in case of Withdrawal from SGF and Triparty Repo  Collateral / Margin?

Members are permitted to withdraw Securities in excess of margin / obligation requirement towards Securities Segment SGF and Tri Party Repo. . For permitted securities withdrawal the transfers are achieved electronically using relative functionality provided in RBI’s eKuber system. A securities transfer request is created and approved by CCIL. The same is confirmed by the member/ custodian for the Member. Upon confirmation by member / CSGL Account holder and successful execution on eKuber, securities are transferred from CCIL’s respective CSGL Account to member’s SGL / CSGL Account.


9. How will transfer of Cash component of SGF and Triparty Repo Margin take place?

Cash contributions are received in CCIL’s RTGS Settlement Account with RBI from members settling their funds obligation at RBI. Other members need to credit the funds to CCIL’s specified Current Account(s) with Settlement bank. Such fund transfers can be made using the RTGS System of RBI or Net Banking System(s) of relative Settlement Bank. The cash collateral contributions and withdrawals are expected to be in multiples of Rs.100,000.
Members seeking to withdraw of cash collateral from Securities Segment SGF or Triparty Repo  Cash Collateral will receive payment by direct credit to their RTGS Settlement / Current Account maintained with RBI / Settlement Bank and recorded in CCIL systems, on relative Value Date of Payment
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10. Will the members be eligible for corporate actions and benefits on the securities contributed to SGF and Triparty Repo  collateral / margin?

Yes, all corporate actions on member’s securities contribution towards SGF/Triparty Repo  are credited  to the RTGS Settlement / Current Account of the concerned member with RBI/Settlement Bank under separate individual electronic advices to the concerned member. Interest payment on securities towards Tri party Repo shall be paid to the member contributing the securities to CCIL though the securities may be debited to gilt account of respective member on account of borrowing of funds.


11. Will the member be eligible for interest on the cash contributions to the SGF and  Triparty Repo Margins?


The eligibility criteria for interest on cash contributed to SGF and Triparty Repo Collateral, shall be as provided in respective chapter of Securities Segment Regulations. Interest shall be paid at the rate notified by CCIL from time to time. Interest is also paid on cash collateral contribution utilized towards margin requirement in Forex Forward Segment and Rupee Derivatives (Guaranteed Settlement) Segment as per the eligibility criteria stipulated in the Regulations for those Segment and at the rate notified by CCIL.


12. How are SGF contributions received for CCIL’s Forex Segment?


Members of CCIL’s Forex Segment are required to contribute to their SGF for Forex segment in US Dollars only. Individual member contribution requirements towards SGF are advised by CCIL to the members. Members are required to give prior notice to CCIL in prescribed format and then remit USD fund contributions to the SGF to CCIL’s USD Nostro  Account with correspondent bank as notified by CCIL from time to time.


13. How are SGF balances refunded to members of CCIL’s Forex Segment?


SGF withdrawals sought by members of CCIL’s Forex Segment, once approved, are refunded by remittance of relative funds to concerned member’s USD Nostro Account with its Correspondent Bank under separate electronic advice to the concerned member.


14. Are members of CCIL’s Forex Segment entitled to any interest on their SGF contributions?

Yes. Forex Segment - SGF contributions received are invested by CCIL in US Treasury Bills and the income earned is passed on to all members net of costs at half yearly rests. The income is distributed amongst members in proportion to the tenor and quantum of individual SGF balances. Interest is paid in US Dollars by credit to members’ US Dollars Nostro  Accounts with their Correspondents.


15. How can the members obtain/view their holding statements, reports etc.?

All reports are electronically delivered by CCIL to its members through its Report Browser.

 

Tri Party Repo



                          
16.

How  the securities settlement will happen in respect of Triparty Repo trades ?
                  
Securities settlement for Triparty Repo trades shall take place in the books of Tri party Repo Agent i.e. CCIL. The securities shall be debited to respective members’ Gilt Account  equivalent to the net funds borrowing outstanding for each tenor and such securities equivalent to net lending for respective tenor shall be credited to the Gilt Account of lender of funds.  


 


17. Where are the details of securities debit and credit to the member’s Gilt Account  are  provided?

The details of securities debit towards borrowing and securities credit on account of lending are provided in ‘Triparty Repo Collateral Holding Statement’, available in PDF and csv format.


18. Can the Lender of funds in Triparty Repo withdraw the security received  towards its lending in its Gilt Account?

Securities credit received by  Lender of Funds  shall not be available for withdrawal or substitution.   


19. Can the Borrower of Funds in Triparty Repo substitute the security debited to its Gilt Account ?

Yes, the borrower of Funds in Tri party Repo is permitted to withdraw / substitute a securities that is debited towards fund borrowing obligation only on the next working day of such debits. Members may carry out this activity in the time window permitted by CCIL for the purpose.


20. Is a Lender receiving security entitled to coupon benefit on the securities credited on account of their lending?

Coupon received on interest payment date, shall be passed to the member(s) contributing the securities. Lender of funds will not receive coupon on securities held by them on account of lending.    .   


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