What types of trades are settled through CCIL? The secondary market transactions in Government
securities are settled through CCIL. The trades concluded in Outright, Market Repo
and Triparty repo market are received for settlement and securities in which trades are received
include Treasury Bills, Central Government Securities, State Government
Securities, STRIPS and When Issued - both New Issues and Re-Issues.
it a pre-requisite to become a member of RBI-CBS/ NDS for settlement through
CCIL? Yes. Only trades done by an RBI-CBS/ NDS member which are received by CCIL are processed for Clearing and Settlement by CCIL.
Under what circumstances the trade will be rejected?
The Clearing Corporation shall have the right to
reject the trades reported to it by the members for settlement under the
the aggregate value of the trades done by the member has exceeded his risk
exposure limits. Such trades are accepted for settlement without Guarantee.
one of the counter-parties to the trade has been suspended or has been rendered
ineligible to avail of the Clearing Corporation's services whether temporarily
one of the counter-parties to the trade is not a member of CCIL.
the trade has been received by the Clearing Corporation from the trading system after cut-off timings
rendering the clearing and settlement of the relative trade for that settlement
the event of the sudden development when clearing and settlement operations for
the particular settlement date have been temporarily suspended.
there is any inaccuracy in the reporting of the trade viz. incorrect NDS
membership ID etc.
other reasons as provided in CCIL Bye-Laws, Rules and Securities Segment
What is the cut off time for secondary market transactions and when are trades received by CCIL for Clearing and Settlement?The secondary market timing for settlement type T+0 and T+1 shall be as stipulated by RBI for that business day. The trades from NDS-OM and CROMS flow online for exposure monitoring, Clearing and Settlement. On each settlement day, all trades received by CCIL and due for settlement on such day are processed immediately after the closure of market trading hours for Government securities transactions for T+0 settlements. All trades concluded for T+1 settlement date are processed by CCIL after the closure of market trading hours for T+1 settlement.
What is shut period? Shut period refers to the period during which no
settlements are permitted in a security.
is DVP-III and where are the trades settled? DVP III is a settlement process in which settlements are done on Delivery versus Payment after achieving multilateral netting. For each Settlement date, the funds are netted for all secondary market transactions in Government securities market whereas in case of securities, the multilateral netting is achieved for each member separately for his SGL and CSGL account and within each such account for each ISIN. The netting for demat trades is at constituent level, then at CCIL Member level through whom the trade is received and then at depository level. Securities settlement for proprietary and constituent outright and market repo trades are settled in the SGL and CSGL account respectively. The demat trades are settled in the CSGL of the depository. Triparty repo trades securities are settled in the Triparty Repo gilt account of the member maintained with CCIL. The funds settlement is achieved in the RBI/ Settlement Bank current account of the member.
the members are informed of completion of settlement? The generation of settlement status report by CCIL
and making it available to members in their Report Server is the time when CCIL
informs the member of completion of settlement process. The information to
members of completion of settlement on a normal week day may be expected around
4.30 p.m on all working days.
Rejected Trade Reports - Securities.
Trade Exceeding Exposure Limit (in case a member exceeds the exposure limit).
Modified Settlement Date Report.
Final Settlement Obligation Report for Securities.
Final Settlement Obligation Report for Funds.
Interim Settlement Obligation Report for Funds.
Interim Settlement Obligation Report for Securities.
Funds and Securities Shortage Report
(in case of shortage in funds or securities
Security Shortage Allocation Report.
Securities and Funds Replenishment Report.
Security and Funds release Report.
IV for Gilts trade
IV for REPO trade
Consolidated Funds Pay-in/Pay-out Obligation Report
Report on Cancellation / Postponement of WI/Auctions Trades
Provisional Pay-out Instructions
Securities Obligation Report for Depositories
Modified Securities Obligation Report for Depositories
Consolidated Securities Position at Depository
Settlement Report – RBI
Settlement Report – DSB
Pay-In/Pay-out Obligations in respect of DSB Members
Trade Withdrawal Report due to First Leg Shortage Allocation
the reports will be made available to members? All Reports are made available to members through
CCIL Report Server.
CCIL handles the shortages in securities in case of non-delivery for securities
obligation by a member? The Security shortage shall be met
from Member Common Collateral (MCC) and/ or Security Line Of Credit Account
(SLOC) and / or balances in its Proprietary SGL Account and funds payment /
securities pay out to the defaulting member will be withheld. In Case the
available pay-Out is not sufficient, then available balance in the concerned member's margin account will be
blocked to cover the value of shortage handled.
is the non-defaulting member compensated in case a trade is allocated?
In case of Securities shortage, the non-defaulting member is compensated on shortage day through cash compensation. Any loss to the non-defaulting member on account of purchase of the security under shortage, from the market can be claimed by the non-defaulting member on the immediate next business day by providing details of such transactions concluded in the secondary market. Similarly, in case of funds shortage allocation, the non-defaulting member is compensated through securities and he can claim the loss, if any, on the next business day by providing details and rate at which that security is sold by the member in the market.
is the member expected to make good the shortfall in funds and securities? A member is expected to replenish the funds / security
on the next business day along with charges.