The Clearing Corporation of India Ltd. (CCIL) on November 07, 2023, issued a circular regarding the Changes to Forex Settlement Regulations.
This has a reference to the Notification No. CCIL/Legal/23/29 dated October 27, 2023, related to the amended Regulations of the Forex Settlement segment have been amended with effect from November 27, 2023
This shall come into force on November 27, 2023
The following has been stated namely: -
• It states that the Notification No. CCIL/FXS/USD-INR/23/09 dated February 28, 2023 stands revised as follows namely: -
In terms of the extant process, Member banks provide USD cash as collateral to CCIL in the Forex Settlement Segment in order to cover margin obligations towards Exposure Limit, Mark to mark-to-market margin, and/or any other margin that may be prescribed in Chapter VII relating to “Risk Management” in the Forex Settlement Regulations. In terms of Chapter III “Settlement Guarantee Fund” “Collateral” of these regulations,
It states that CCIL is authorized to invest the USD cash contribution received from Members in U S Treasury Bills, bank deposits, or such other instruments in accordance with its Investment Policy and distribute net earnings arising out of such investments on the basis of average daily cash balances at half-yearly rests, at 25 basis points below the weighted average rate earned by CCIL during that period. Clause C of Chapter III of the Forex Settlement Regulations has been suitably amended.
• The updated Regulations are also available on our website (www.ccilindia.com) under the Membership section.
[Notification No. CCIL/FX/USD-INR/23/56]
