The Clearing Corporation of India Limited (CCIL) on August 22, 2023, issued a notification regarding the Collateral Work-Flow Procedure for Continuous Linked Settlement (CLS Segment) with effect from September 25, 2023
The following has been stated namely: -
• It sets out the workflow process relating to deposits and withdrawals of all types of collaterals to be maintained with CCIL for the CLS Segment
• It lays down the workflow processes in respect of each form of eligible Collateral towards the CLS Segment and has been incorporated in Sections II, III, and IV respectively of this Notification.
• It states that All contributions/Withdrawals of collaterals shall be captured, stored, and maintained by CCIL on a Value Date basis.
• It states that the Unutilised Settlement Guarantee Fund (SGF) contribution of a member in Securities Segment SGF can be applied towards collateral/Limit obligation of the member in CLS Segment, subject to provisions of CCIL’s Bye-laws, Rules and Regulations.
• It further states that in terms of Securities Segment Regulations, members are required to maintain at least 10% of their margin requirements in the form of INR fund contributions to Securities Segment SGF. However, Members may kindly note that their CLS collateral limit requirements met from Securities Segment SGF will be excluded from the scope of cash securities composition monitoring.
• The workflow process for deposits and withdrawals of Funds (INR) and Government of India Securities as spelled out in the Notifications for Securities Segment SGF revised from time to time shall be applicable.
[Notification No. CCIL/OPS/CLS/2023-24/21]
