The Clearing Corporation of India Ltd (CCIL) on October 27, 2023, issued a notification regarding Collateral Work-Flow Procedure for Designated Settlement Banks (DSB) and CSGL Account Holders (CAH) with effect from November 27, 2023.
The following has been stated: -
•In terms of Bye-laws, Rules, and Regulations of the Clearing Corporation of India Limited (CCIL), Members including Associate Members (Members) are required to contribute securities and/or funds towards Triparty Repo (TPR) Collateral / Margin contributions to cover their operations in CCIL ' s Securities Segment.
•The members shall also be required to contribute securities and/ or funds towards Default Fund – Tri party Repo as established in terms of the above referred Securities Segment Regulations and based on its applicability.
•This Notification sets out the workflow procedure for banks designated as Settlement Banks (DSB) by CCIL for its operations in the Securities Segment – Tri-party Repo. It outlines procedures relating to deposits, withdrawals of funds and/or securities, and corporate actions in respect of Members/ Associate Members in CCIL's Securities Segment – Tri-party Repo, required to be carried out by the Settlement Bank in the discharge of its obligations and responsibilities.
•Intraday cash withdrawal may be permitted only for interest (coupon) retained, if any towards shortfall in the Borrow Limit of member in Securities Segment – Tri party Repo.
•All security contributions towards Triparty Repo Collateral shall be received and held in CCIL's Constituent Subsidiary General Ledger (CSGL) Account with the Public Debt Office of RBI. Similarly, all security withdrawals for Members shall be delivered by CCIL from its above CSGL Account to the CSGL Account of the DSB / CAH with PDO, RBI.
•The cut-off timings specified for various activities relating to Collateral/Margin are notified separately and the same shall be adhered to.
•DSB and CAH will take into account the provision of Notifications No. CCIL/OPS/TPR/2023-24/51 dated October 27, 2023, issued to members/associate members detailing the collateral workflow procedure for deposit/ withdrawal of funds / securities towards Tri party repo collateral / DF Triparty Repo.
The detailed notification is given in the document attached below.
[Notification No. CCIL/OPS/TPR/2023-24/ 46]
