The Clearing Corporation of India Ltd (CCIL) on October 27, 2023, issued a notification regarding Collateral Work-Flow Procedure for Designated Settlement Banks (DSB) with effect from November 27, 2023.
The following has been stated: -
•In terms of by-laws, Rules, and Regulations of the Clearing Corporation of India Limited (CCIL), Members are required to contribute funds towards Member Common Collateral (MCC) to cover their operations in applicable business segments of CCIL.
•The members shall also be required to contribute funds towards Default Fund(s) as established in terms of the above-referred Regulations and based on its applicability.
•This Notification sets out the workflow procedure for banks designated as Settlement Bank (DSB) by CCIL for its operations. It outlines procedures relating to deposits, withdrawals of funds, and corporate actions in respect of Members that are required to be carried out by the Settlement Bank in the discharge of its obligations and responsibilities.
•All funds deposit-related notices by members for contribution to MCC / Default Funds shall be routed through the respective DSB. For all funds withdrawal notices an intimation shall flow to the respective DSB, post submission of a notice of withdrawal by a member.
•For cash collateral operations relating to MCC the bank accounts shall be considered in the following order: • Account recorded for Securities Segment; • Account recorded for Rupee Derivatives Segment.
•All corporate actions payable to Members/ on their Cash / Security(ies) collateral/ margin contribution in terms of CCIL's Bye-Laws, Rules, and Regulations, shall be effected through CCIL's Current Account with Settlement Bank or to the Clearing Member Account.
•CCIL shall instruct the Settlement Bank to credit the individual Members’ Current Account with them by debit to CCIL's Current Account with them.
•Issuance of instructions to transfer funds from CCIL's Current Account with the designated Settlement Bank to the concerned Members’ Current Account with the said Settlement Bank shall be construed as due and proper delivery of funds to the concerned Member by CCIL.
•CCIL shall affect all corporate actions payable for constituent holdings to respective Clearing members.
The detailed notification is given in the document attached below.
[Notification No. CCIL/OPS/MCC/2023-24/ 45]
