Services

Minimum Financial Eligibility Criteria for Grant of CCIL Membership

Further to the Notification No. CCIL/MEM/GEN/2023-24/23 dated 04th September 2023, members are hereby advised that there is a revision in the minimum financial eligibility criteria applicable for grant of CCIL membership to any CCIL Business Segment as under with effect from 04th October, 2023.

 

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 Payments Bank/ Small Finance Bank/ NBFC/ Insurance Company or a Statutory Corporation or a body corporate including a Company as defined in the Companies Act, 2013 or any entity as may be permitted from time to time by Reserve Bank of India to access its E-Kuber or Negotiated Dealing System- Order Matching (NDS- OM) segment or any part thereof;
2. Have opened SGL 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–E-Kuber and INFINET;
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 any 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 undertake. The financial eligibility criteria shall be applicable to respective category of entities as notified by Clearing Corporation.
9. Be a profitable organization (must have reported operating profits in atleast 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

Triparty Repo under Securities Segment:

The following minimum eligibility criteria shall apply for grant of Membership to the  Triparty Repo under Securities Segment :  

(A)    Triparty Repo under Securities Segment (NDS Members)
The eligibility criteria for ad mission of members to the Triparty Repo segment shall be the same as applicable for admission to Securities Settlement Segment.

(B)    Triparty Repo under Securities Segment (Associate Members)

The eligibility criteria for being considered for admission as an Associate Member to Triparty Repo under CCIL's Securities Segment are:

• Be eligible to undertake Triparty Repo trade
• Open GILT Account with Clearing Corporation;
• Maintain Current Account with a bank(s) identified as settlement bank(s) 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 (must have reported operating net profits in at least two out of three financial years immediately preceding the date of application);;
• Have sufficient tangible net worth which in the opinion of Clearing Corporation is adequate to support its proposed level of activities in money market / treasury operations. The financial eligibility criteria shall be applicable to respective category of entities as notified by Clearing Corporation;

The Forex Segment:

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

1. Be an Authorized Foreign Exchange Dealer;
2. Have a current account with the Reserve Bank of India for settlement of transactions in Indian Rupees;
3. Have Nostro Account(s) with its Correspondent(s);
4. 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:

1. 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;
2. 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;
3. Has been barred by an order of a Court/Government/Regulatory body for any violation of law;
4. Has been at any time declared a defaulter under any Law or by any regulatory body;
5. Has been previously refused admission to Clearing Corporation unless the period of one year has elapsed since the date of last rejection;

The Derivatives Segment

The applicant shall belong to a class of entities permitted by Reserve Bank of India, and by the relevant sectoral Regulator, where applicable, to enter into Rupee Derivative Trades. 

1. For availing the facility of non-guaranteed settlement, the applicant shall also maintain a current account with Reserve Bank of India for settlement of transactions in Indian Rupees.  
2. For membership to the Rupee Derivatives (Guaranteed Settlement) segment, the entity shall: 
3. Maintain a current account with Reserve Bank of India or a bank identified as Settlement Bank by Clearing Corporation for settlement of transactions in Indian Rupees.
4. Have adequate risk management systems and policies in place and qualified personnel in its employment

Following entities are eligible to participate in the CCP Clearing.  (Instruments covered under IRS and FRA)

1. Market Makers- All   Scheduled Banks, Standalone Primary Dealers (SPDs) and All-India Financial Institutions (AIFIs)
2. Non-Retail Entities- entities regulated by the Reserve Bank, Mutual Funds, Insurance Companies, Pension Funds. 
3. Retail Entities- like Corporates, FPI (Foreign Portfolio Investors)/ FII (Foreign Institutional Investors) which are eligible to participate in Rupee Interest Rate Derivatives can join as Constituent via Clearing Member Model offered by CCIL for IRS Segment.
4. AD Category Banks are eligible to participate for the CCP Clearing for Modified MIFOR (MMFOR):