The Clearing Corporation of India Ltd. (CCIL) on October 27, 2023, issued a notification regarding the Reconstitution of Settlement Guarantee Fund as a Member of Common Collateral.
The Clearing Member structure facilitates the extension of CCIL's CCP Clearing services to indirect participants who can access these services as Constituents (Clients) of the Clearing Members, who are the direct Members of CCIL.
Under this structure, the Margin needs to be collected from the Clearing Members for their Proprietary as well as for their Constituents' transactions. Collaterals are maintained by CCIL in a Constituent-wise segregated manner under its Clearing Member separately.
Keeping in view the optimum use of common collateral in multiple segments, it is now proposed to make collateral contributions segment agnostic wherein the collateral contributions shall be to a common pool. The Member of any of the segments may now contribute the collateral to such a common pool for itself and its constituents.
Kindly note that the Tripartite Repo and Forex USD/INR segments at present require specific Collateral contributions by Member as per respective segment requirement, which shall continue unchanged as specified by CCIL in terms of its Bye-laws, Rules and Regulations.
The changes to the Bye–Laws, Rules and Regulations will be effective from November 27, 2023.
[Notification No. CCIL/Legal/23/29
