The Clearing Corporation of India Ltd. (CCIL) on October 27, 2023, issued a notification regarding the Collateral Work-Flow Procedure for Continuous Linked Settlement (CLS Segment).
The following have been stated:
All the members of the CLS Segment are required to contribute collaterals to cover their risk exposure limits in CCIL’s CLS Segment.
It is stated that the members are required to maintain a notified percentage of their margin requirements in the form of INR fund contributions to MCC. However, Members may kindly note that their margin/limit requirement in the CLS Segment met from MCC will be excluded from the scope of cash: securities composition monitoring.
The members can contribute CLS collateral in the form of US Dollars in terms of CLS segment Regulations.
It is stated that the interest shall be paid to members on their USD Fund collateral contribution towards CLS Segment (CLS Collateral) on a Semi-Annual basis i.e. during the first week of April and October every year for their USD contributions during the previous six months.
It is stated that the CCIL shall pay interest on the US Dollar cash contribution of members at 25 basis points below the weighted average rate earned during the relevant period out of the investment(s) in US Dollar Deposits/Treasury Bills.
The above change is effective from October 01, 2023, i.e. for payment of interest for the half year April 01, 2023, to September 30, 2023, and every half year thereon.
[Notification No. CCIL/OPS/CLS/2023-24/47]
