The National Commodity Clearing Limited (NCCL) on December 24, 2024, issued the notification regarding the Scheme of deposit for acceptance of Government Securities, Treasury Bills and Sovereign Gold Bonds as Collateral.
The following has been stated namely: -
• The Clearing Corporation has revised the list of approved Government Securities, Treasury Bills, and Sovereign Gold Bonds as collateral for Additional Base Capital (ABC).
• These securities will be subject to a haircut determined by the Clearing Corporation.
• The list of approved securities and haircut requirements may be revised periodically.
• Securities issued by the RBI during the month are accepted from the date of listing on NSE.
• Discontinued securities will not provide any benefit as collateral.
• The benefit of approved securities will be withdrawn two days before their maturity.
• Banks providing Government Securities or Treasury Bills as collateral cannot count them for SLR purposes or use them for trading.
• The valuation of these securities will be done daily using prices from CCIL (for Government Securities/Treasury Bills) and NSE (for Sovereign Gold Bonds).
• The collateral value will be determined by applying the relevant haircut percentage.
• The revised list of eligible securities and haircuts will be applicable from January 01, 2025.
Annexure 1 with the revised list of Government Securities, Treasury Bills and Sovereign Gold Bonds along with the haircut details has been attached in the notification.
[Notification No. NCCL/RISK-070/2024]
