09:56 Jan 19, 2017
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Introduction

The Membership Department admits & activates various entities as Members or Associates Members of CCIL's various business segments to enable clearing and settlement of their deals through CCIL.


Member, including Associate Member is an entity admitted as Member of Clearing Corporation under its Bye -laws, Rules and Regulations to transact business under any of its segments and does not denote the shareholders of Clearing Corporation. Provided that shareholders of Clearing Corporation may also be admitted as Members of Clearing Corporation. A Member of any segment may clear and settle Trades pertinent to that segment through Clearing Corporation in such manner and mode as may be prescribed by Clearing Corporation.


Members may transact, clear and settle Trades either on their own account or on behalf of the constituents unless otherwise specified by Clearing Corporation from time to time.
CCIL have prescribed elaborate and objective requirements for the Members participating in clearing & settlement system of CCIL. The minimum eligibility criteria prescribed for various business segments are as under:

 

 

                                                                        The Securities Segment

The following minimum eligibility criteria shall apply for grant of Membership to the "Securities" segment of Clearing Corporation: The applicant shall:

1. be a Bank/Financial Institution/Primary Dealer/Mutual Fund or a Statutory Corporation or a body corporate including a Company as defined in the Companies Act, 1956 or any entity as may be permitted from time to time by Reserve Bank of India to access its Negotiated Dealing System (NDS) or any part thereof;
2. have opened SGL Account or Gilt Account;
3. have opened a Current Account with the Reserve Bank of India /Settlement Bank; Provided however that Clearing Corporation may relax the requirement of the maintenance of Current and SGL Accounts in respect of the Members;
4. be a Member of RBI-NDS and/or INIFINET;
5. not have any record of repeated failure in complying with the regulatory requirements;
6.not have been subject to an order of statutory disqualification or an order of similar effect issued by a regulatory authority;
7. have adequate risk management systems in place and shall have qualified personnel in its employment;
8. fulfilled Capital Adequacy norms/Minimum Net Worth requirements as laid down by their respective regulators; if no such norm is prescribed or if the applicant is exempted from fulfilling the same, then the applicant shall have adequate Net Worth to support the scale of operations undertaken or proposed to be undertaken;
9. be a profitable organization (must have reported operating profits in at least two out of three financial years immediately preceding the date of application);
provided that Clearing Corporation at its discretion may exempt any entity as specified in point No. (1) above, and from the requirement of point no. 8 & 9 above

 

Financial Criteria
(In terms of Notification No: CCIL/MEM/SS/13/11 and CCIL/MEM/SS/13/12 both dated 09th April 2013)

In partial modification to our Notification No. CCIL/MEM/SS/11/15 dated 28th September 2011, it has been decided that the minimum financial eligibility criteria applicable for membership to respective category of entities stands revised as under with immediate effect:
1) Mutual Fund applicants shall have minimum Assets under Management (AUM) worth Rs.100 crores.
2) Cooperative Banks shall have minimum Net worth of Rs. 25 crores and maximum Net NPAs at 5%.
3) The Insurance Companies eligible for the Membership of CCIL shall have the minimum Net Worth of Rs. 100 crores.
4) Provident Funds & Trusts applicants shall have a minimum corpus of Rs.100 crores.
5) The NBFCs applicants shall have minimum Net Worth of Rs.100.00 crores.


The CBLO Segment

The membership of CBLO segment initially covered only those entities who were already members of Reserve Bank of India's Negotiated Dealing System. CBLO membership has since been extended to cover other market players such as Co-operative Banks, NBFCs etc. who are not members of RBI-NDS. Such Non-NDS members are eligible to be admitted as Associate Members to CCIL's CBLO segment.
(A) CBLO (NDS Members)
The eligibility criteria for ad mission of members to the CBLO segment shall be the same as applicable for admission to Securities Settlement Segment.
(B) CBLO (Non-NDS Members)
The eligibility criteria for being considered for admission as an Associate Member to CCIL's CBLO Segment are:
not be eligible, as per RBI guidelines, to open SGL Account and/or Current Account with RBI;
open GILT Account with Clearing Corporation when required;
maintain Current Account with a bank identified as settlement bank by Clearing Corporation for settlement of transaction(s);
be familiar with treasury operations;
have experienced and qualified personnel in its treasury and/or finance departments who have the requisite experience required for undertaking trading, clearing and settlement operations;
have adequate risk management systems in place;
not have any record of failure in honouring its obligations to the market intermediary, which shall be duly certified by its internal auditors;
not have been subject to an order of statutory disqualification or an order of similar effect issued by a regulatory authority;
be a profitable organization and must have reported net profits in at least preceding three financial years;

have sufficient tangible networth which in the opinion of Clearing Corporation is adequate to support its proposed level of activities in money market/treasury operations

 

Financial Criteria
(In terms of Notification No: CCIL/MEM/CBLO/13/10 dated 09th April 2013 )
In partial modification to our Notification No. CCIL/MEM/CBLO/11/16 dated 28th September 2011, it has been decided that the minimum financial eligibility criteria applicable for membership to respective category of entities stands revised as under with immediate effect:
1) Mutual Fund applicants shall have minimum Assets under Management (AUM) worth Rs.100 crores.
2) Cooperative Banks shall have minimum Net Worth of Rs. 25.00 crores and maximum Net NPAs at 5%.
3) The NBFCs applicants shall have minimum Net Worth of Rs.100.00 crores
4) Provident Funds & Trusts applicants shall have a minimum corpus of Rs.100 crores. 
5) The Insurance Companies eligible for the Associate Membership of CCIL shall have the minimum Net Worth of Rs. 100 crores.                         

The FOREX Segment

The following eligibility criteria shall apply for grant of Membership to the "FOREX" segment of Clearing Corporation. The applicant shall:
be an Authorized Foreign Exchange Dealer;
have a current account with the Reserve Bank of India for settlement of transactions in Indian Rupees;
have Nostro Account(s) with its Correspondent(s);
have adequate risk management systems and policies in place and qualified personnel in its employment;


No entity shall be admitted as a Member of Clearing Corporation if:
proceedings for winding up have commenced or if it has been ordered to be wound up or a provisional liquidator/receiver/official liquidator has been appointed for such an entity;
has compounded with its creditors for less than full discharge of debts save if such acts of compounding as are carried out in the normal course of its business as a part of a restructuring process;
has been barred by an order of a Court/Government/Regulatory body for any violation of law;
has been at any time declared a defaulter under any Law or by any regulatory body;
has been previously refused admission to Clearing Corporation unless the period of one year has elapsed since the date of last rejection;

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