Collateral towards margin requirement in Securities Segment were contributed by members to Securities Segment – Settlement Guarantee Fund (SGF). The SGF was also utilised for margin requirement in Forex Settlement, Continuous Linked Settlement, Forex Forward and Rupee Derivatives Segment. In order to have a Segment Agnostic Fund, the Member Common Collateral (MCC) shall replace SGF as a common pool of collaterals accepted from members.
The Forex Settlement Segment – Settlement Guarantee Fund shall be called as FX Collateral.
Members may contribute cash and eligible securities (Government Securities and Treasury Bills) towards MCC. However, members are required 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 requirement in Forex Forward and Rupee Derivatives (Guaranteed Settlement) Segment.
Yes, a member can contribute its entire contribution to MCC by way of cash (INR).
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 contributed towards Triparty Repo Collateral. The Risk Management Department has notified the Borrowing Limit computation methodology separately.
The lists of securities that are eligible for contributions by members towards MCC and Tri party Repo are separately notified by Risk Management Department of CCIL from time to time. The notification(s) in this regard can be downloaded from risk management section on the website.
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 MCC and Triparty Repo Collateral, is available under Notifications – Securities on CCIL website.
Transfer of securities from and/ to MCC/ 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.
Members are permitted to withdraw Securities in excess of margin / obligation requirement towards MCC 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/ CSGL Service provider for the Member. Upon confirmation by member / CSGL Service provider and successful execution on eKuber, securities are transferred from CCIL’s respective CSGL Account to member’s / CSGL Service provider’s SGL / CSGL Account.
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.1000/-. Members seeking to withdraw of cash collateral from MCC 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.
Yes, all corporate actions on member’s securities contribution towards MCC/Triparty Repo are credited to the RTGS Settlement / Current Account of the concerned member with RBI/Settlement Bank under 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.
The eligibility criteria for interest on cash contributed to MCC and Triparty Repo Collateral, shall be as per CCIL’s Bye laws Rules, Regulations and applicable Notifications. 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 CCIL’s Bye laws Rules, Regulations and applicable Notifications at the rate notified by CCIL.
Members of CCIL’s Forex Segment are required to contribute to their FX Collateral for Forex segment in US Dollars only. Individual member contribution requirements 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 CCIL’s USD Nostro Account with correspondent bank as notified by CCIL from time to time.
FX Collateral 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.
Yes, CCIL pays interest on US Dollar collateral in terms of CCIL’s Bye laws Rules, Regulations and applicable Notifications. Forex Segment – FX Collateral 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 FX Collateral balances.
Interest is paid in US Dollars by credit to members’ US Dollars Nostro Accounts with their Correspondents under electronic advices to the concerned member.
All reports are electronically delivered by CCIL to its members through its Report Browser.
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.
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.
Securities credit received by Lender of Funds shall not be available for withdrawal or substitution.
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.
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.
Operational FAQs
Please call on 61546482-89 or please send us an email at cfm@ccilindia.co.in
Please call on 61546482-89 or please send us an email at cfm@ccilindia.co.in
Members may contact Collateral and Funds Team at CCIL on 61546482/85/87/88
Please call Collateral Management Team on 61546485/88/87/91