Net Debit Cap (NDC) - USD is a limit up to which CCIL can take exposure on a member in terms of net US Dollar sale position of such member. NDC - INR is a limit up to which CCIL can take exposure on a member in terms of net INR sale position of such member. NDC is fixed settlement date-wise and is fixed on the basis of certain parameters such as Short-term credit ratings for the Member, as determined by an independent credit rating agency, Tier-I capital etc.
Margin Factor is derived from the Market risk factor which is same for all members and set at 3 times of the Value-at-Risk for Rupee-US Dollar exchange rate (to take care of the market risk component for positions for 3 settlement days for which trade acceptance happens simultaneously), subject to a floor. The margin factor will be stepped up by a step-up factor, which is arrived at on the basis of the member's Short-term credit ratings as determined by an independent credit rating agency.