Deals executed on the India International Exchange (IFSC) Limited (INDIA INX) are eligible to be cleared and settled through India International Clearing Corporation (IFSC) Limited (INDIA ICC) unless specifically deferred or not allowed to, or rejected from admission by the relevant authority.
1.1 Collateral Composition
Clearing Members of the INDIA ICC may deposit liquid assets in the form of cash
in USD or Bank Fixed Deposits Receipts (FDRs) in USD or Bank Guarantees
in USD or ‘AAA’ rated International Sovereign Securities
Table 1.1 Composition of Liquid Assets
|Cash Component: Cash & Cash Equivalent
Cash in USD
Bank Fixed Deposits Receipts (FDRs) in USD*
Bank Guarantee in USD*
‘AAA’ rated international sovereign
||10% of Cash & Cash Equivalent
*Issued by bank branches located at IFSC
1.2 Minimum Liquid Assets
The Clearing Member shall meet with the minimum liquid assets requirements prescribed by INDIA ICC at all points of time.
Every Clearing Member is required to maintain with INDIA ICC, Minimum Liquid Networth (MLN) in the form of cash in USD 75,000 at all points in time, after adjusting the initial margin and exposure margin requirements.
1.3 Additional Liquid Assets
Clearing Members may deposit additional liquid assets at any point of time based on the composition of Liquid Assets as detailed above. Additional liquid assets can be deposited by the member either in the form of Cash, FDRs or Bank Guarantees.
1.4 Procedure for submission of Cash deposits towards Liquid Assets
For depositing cash towards liquid assets, the Clearing Members need to send their online instruction through Collateral Module to their respective Clearing Banks who would confirm such request for enhancement of cash collateral to India ICC.
INDIA ICC has provided an on-line facility (Collateral Module) to members for sending instructions to Clearing Banks for enhancement of cash collateral.
Through the said facility, members can place their on-line requests to their designated Clearing Bank during the specified timings for enhancement of cash collateral. The concerned Clearing Banks have also been provided the on-line web-based facility for confirmation of such cash collateral enhancement requests. Based on the request forwarded by the member, the respective Clearing Banks may confirm or reject the enhancement of cash collateral request received by them.
1.5 Procedure for submission of Fixed Deposit Receipts
Clearing Members can deposit FDR(s) issued by a clearing bank branches located in IFSC towards liquid assets. The FDRs deposited by the Clearing Members should be issued in favour of "India International Clearing Corporation (IFSC) Ltd. A/c – Trade Name of the Clearing Member" and should be duly discharged by the Clearing Member himself or an authorised signatory of the member on the reverse of the FDRs. The FDR needs to be deposited along with a covering letter of the Clearing Member in the format given in Annexure - I (FDRs) and also with a letter from the concerned bank addressed to India ICC in the format given in Annexure – II (FDRs).
1.6 Renewal of Fixed Deposit Receipts
Clearing Members may renew the FDRs deposited towards liquid assets by submitting a renewal letter from the concerned bank in the prescribed format given in Annexure – III (FDRs). The renewal letter should be submitted along with a covering letter by the Clearing Member in the prescribed format given in Annexure – IV (FDRs).
1.7 Procedure for submission of Bank Guarantees (BGs)
Clearing Members can deposit Bank Guarantees (BGs) issued by bank branches located at IFSC towards Liquid Assets in the prescribed format as given in Annexure – V (BGs). The BG may be deposited along with a covering letter of the Clearing Member in the format as given in Annexure – VI (BGs). Clearing Members can deposit bank guarantee(s) with/without the claim period. In cases where bank guarantee(s) are submitted without a claim period, the amount of the bank guarantee(s) would be removed from the liquid assets of the member at least seven days before the expiry date of the bank guarantee(s) or such other period as may be decided by India ICC from time to time.
1.8 Procedure for Renewal / Withdrawal of BGs
Clearing Members may renew the BGs deposited towards Liquid Assets by submitting a renewal letter from the concerned bank in the prescribed format given in Annexure – VII (BGs). The renewal letter should be submitted along with a covering letter by the Clearing Member in the prescribed format given in Annexure – VIII (BGs). The clearing members shall furnish the renewal document strictly in the prescribed format before the date of expiry / maturity date of the bank guarantee. The members may also opt to give a fresh bank guarantee in favour of India International Clearing Corporation (IFSC) Ltd. instead of renewing the expired bank guarantees
1.9 Procedure for submission of release request of Liquid Assets
Clearing Members having active membership status can place their on-line
request for release of Liquid Assets lying with INDIA ICC by login through
specific user-ids and passwords into CLASS collateral module provided
to them. Such requests may be considered by INDIA ICC, subject to no lien
being exercised by INDIA ICC/INDIA INX pursuant to the applicable Rules,
Byelaws and Regulations and subject to the availability of the collateral
after adjusting for due fulfilment of all obligations and liabilities
arising out of or incidental to any deals made by such clearing member/trading
member or anything done in pursuance thereof.
Clearing Members can log in to the web-based CLASS Collateral Module and submit their release requests of collateral/s available collaterals for release.
1.10 Facility of reminder emails on matured instruments
India ICC sends reminder emails providing details of the instruments getting matured in the near period. Clearing members are, however, advised to submit the renewal instruments within the stipulated period to avoid any hardship.