Services

Securities Settlement

Introduction:

Members of CCIL’s Securities Segment are required to deposit their margin contributions into CCIL’s Settlement Guarantee Fund (SGF) maintained for this business segment. Individual member contributions is a function of their outstanding trade obligations based on the types of trades, securities involved and value dates of settlement. Members are expected to always maintain adequate balances in their SGF to cover their outstanding trade exposures. Margins are required to be maintained by every member for their own trades as well as trades reported by them on behalf of their constituents.

SGF is received in the form of both cash and securities. Members settling their funds obligations at Reserve Bank of India contribute their SGF Cash collateral in CCIL’s RTGS Settlement Account with Reserve Bank of India. Whereas members settling their funds obligations at settlement bank(s) (commonly known as Multi Modal Settlement Bank mode of settlement) contribute their SGF cash collateral in CCIL’s Current Account with respective settlement bank. Minimum cash collateral contribution of Rs. 1 Lac needs to be maintained by a member at all times during currency of their membership to CCIL’s Securities Segment. SGF security contributions from all members are received and maintained in CCIL’s Constituent SGL (CSGL) Account maintained with Reserve Bank of India, Mumbai  Securities Segment SGF contributions are also utilized towards member’s margin requirement in CCIL’s Continuous Linked Settlement (CLS) and Forex Forward Segment(s).

Composition

SGF is received in the form of cash and securities. Members are required to maintain a minimum of 10% of their Securities Segment margin requirements in the form of cash contributions to SGF. Members have the option to maintain their entire SGF contribution in the form of Cash.

The balance SGF contribution can be held in the form of specified GOI dated securities and/or Treasury Bills from amongst a list of eligible securities notified by CCIL from time to time.

Members of CCIL’s Securities Segment are currently required to maintain a ratio of 1:9 in respect of their cash: securities SGF contributions in relation to their margin requirements. The same ratio for CCIL’s Forex Forward Segment is 95:5 i.e. minimum 5% of margin requirement towards Forex Forward Segment needs to be maintained in cash. No minimum cash contribution / ratio is prescribed towards CLS Segment margin obligation of members.

Work Process

SGF - Cash

Members desirous of making cash contributions to their SGF are required to intimate CCIL about the same using the eNotice System or a physical notice of deposit in a prescribed format within the cut off time prescribed for the purpose. Cash contributions from members are received through Reserve Bank of India’s Real Time Gross Settlement (RTGS) system by credit to CCIL’s RTGS Settlement Account maintained with Reserve Bank of India. MMSB members are required to credit the relevant amount to CCIL’s current account with settlement bank. These are expected to be held in multiples of INR 100,000.Member SGF balances are updated by CCIL upon receipt of relative funds into its RTGS Settlement / Current Account with RBI / Settlement Bank. Updated Transaction Reports and Holding Reports are available for download on CCIL’s Reports Browser.

Members seeking to withdraw from their SGF Cash contributions are required to intimate CCIL about the same using the eNotice System or a physical notice of withdrawal in a prescribed format at least one business day in advance within the cut-off timings prescribed for the purpose. Withdrawal requests are processed and permitted after taking into account concerned member’s margin requirement(s) in  Securities Segment, CLS and Forex Forward Segment. Withdrawal payments are made by credit to concerned members RTGS Settlement / Current Account  as recorded with CCIL for settlement purpose on relative value date of payment. Transaction Reports and Holding Reports are available for download on CCIL’s Reports Browser. 

SGF – Securities

All transfers of securities to and/or from CCIL by its members are carried out on a “Value Free of Payment” basis.

Members desirous of making securities contributions to their SGF are required to intimate CCIL about the same using the eNotice System or a physical notice of deposit in a prescribed format within the cut off time prescribed for the purpose Security contributions are received and maintained in a separate CSGL Account with RBI. SGF security contributions are made from among the list of specified securities eligible for margin contributions. The list of Eligible Securities is notified by Risk Management Department of CCIL from time to time. Deposit of Securities by Members into SGF is carried out electronically using the Value Free Transfer functionality in RBI’s ekuber System. A securities transfer request is created and approved by the member. The same is confirmed by CCIL and forwarded to RBI electronically for settlement. Members have to ensure adherence to cut off timings prescribed by RBI for the purpose. Member SGF balances are updated by CCIL upon receipt of relative securities into its CSGL Account with Reserve Bank of India. Updated Transaction Reports and Holding Reports are available for download on CCIL’s Reports Browser.

Members seeking securities withdrawal from their SGF contributions are required to intimate CCIL about the same using the eNotice System or a physical notice of withdrawal in a prescribed format within the cut-off timings prescribed for the purpose. Withdrawals requests are processed and permitted after taking into account concerned members’ margin requirement(s) in Securities Segment as well as other segments wherein SGF is utilised. Security withdrawals are effected through Value Free Transfer functionality in RBI's ekuber System under advice to the Member. A securities transfer request is created and approved by CCIL. The same is confirmed by the concerned member and forwarded to RBI electronically  for settlement. Securities are transferred to the Proprietary SGL Account of members maintained with RBI on relative value date after their SGF security balances have been suitably reduced. Updated Transaction Reports and Holding Reports are available for download on CCIL’s Reports Browser. 

Corporate Actions and Benefits

​All corporate actions on member SGF holdings are serviced through the RTGS System of Reserve Bank of India and net banking system(s) of settlement banks. Relative funds are remitted to the RTGS Settlement / Current Account of concerned members with separate individual electronic advices to members

SGF – Cash – Interest Payment

Members are entitled to interest on their cash contributions to SGF, which is actual cash contributions utilised towards Securities Segment margin requirement, less the minimum interest free cash collateral prescribed the purpose separately for Proprietary trades and also for each Constituent's trades.

While arriving at interest eligible balance in respect of collateral contributions to the group (LSOC), cash utilised out of the number reported for each Constituent, shall be considered as the upper limit of cash contributed for respective Constituent by the Clearing Member, for the purpose of computing cash contributions eligible for interest payment ;

CCIL pays interest on eligible cash contributions to such members at quarterly rests (at the end of every calendar quarter) during the relative period @ 100 basis points below the weighted average 91 Day Treasury Bills’ cut off yields at the last three primary auctions held before the relevant interest payment date. Interest payment process is available to members under Notification section>>Securities.

Securities Segment SGF is also utilized towards margin requirement in CLS and Forex Forward Segment. Cash collateral contribution from Securities Segment SGF utilized towards Forex Forward margin requirement in excess of Rs. 1 Crore is eligible for interest, payable on quarterly basis. The Rate of Interest payment is same as applicable for members of Securities Segment.

SGF – Securities – Interest Payment

Periodic coupon payments received in respect of Members’ SGF security contributions (held in the form of dated securities) are passed on to concerned Members by CCIL immediately upon receipt of relative interest from Reserve Bank of India.

SGF – Securities – Redemptions

Redemption proceeds of matured securities are treated as concerned members’ additional cash contribution to SGF.

List of Eligible Securities

CCIL prescribes a list of securities at periodic interval that are eligible for margin contributions by members towards the SGF.

Latest Notification containing current List of eligible securities