Clearing members may submit deposit in the form of cash by making the required amount available in their respective clearing bank account, sending an authorization to the respective clearing bank for debiting the said amount from their clearing account.

The benefit of such cash deposit requests shall be subject to receipt of bank confirmation from the respective clearing bank by the Clearing Corporation. A member who has authorised the Clearing Corporation to debit his clearing account as above shall ensure due performance of the commitment. Non-fulfilment of such obligation will be treated as a violation and/ or non-performance of obligations and shall attract consequences, penalty and/ or penal charges as applicable to violations.

Clearing members are permitted to submit fixed deposit receipts as collateral towards liquid assets.The FDR should be issued in favour of NCCL - A/c “Clearing Member Name” in case of Physical form deposited with the Clearing Corporation. Clearing Member can also submit E-FDA as collateral towards Liquid Assets issued in favour of NCCL - A/c “Clearing Member Name” from approved banks for issuance of Electronic Fixed Deposit Advice.

Clearing members need to ensure following before submitting FDRs in Physical form to NCCL:

• Clearing members have to issue a letter to NCCL as per the formats specified.
• Clearing members have to submit a lien letter given by approved banks issuing the FDR to NCCL as per formats specified.
• The FDR should have validity for a minimum period of 3 months in case of margin deposit and for a minimum period of 12 months in case of security deposit.
• The FDR issued in electronic form can have validity for a minimum period of 7 days in case of margin deposit and for a minimum period of 12 months in case of security deposit
• The minimum value of FDR that may be accepted is Rs.1 lakhs.
• The FDR should be issued by any of the branches of approved banks.

Member can additionally provide FDR‟s in electronic formats. The Procedure is as below:

1. Member approaches and requests the Bank to create FDR (in electronic form) and mark lien in favour of the NCCL, the process is same as for physical FDR.
2. Member submits the required documents to the Bank for creation of FDR and marking the lien as per the same process as for physical FDR. The Member is required to provide additional information to the Bank as given below.
   • Trading Member Code and Clearing Member Code
   • FDR is towards Base Capital or Additional Base capital
3. Bank issues FDR in electronic form and marks lien in favour of the NCCL.
4. Bank will send and confirm the FDR information in electronic form to NCCL.
5. NCCL will validate the details and if found correct shall pass on the benefit of the same to the member.
6. Members will get a system generated e-mail.
7. The list of Approved Banks who shall provide this facility to members is given at Annexure 4.
   • AU Small Finance Bank
   • Axis Bank
   • HDFC Bank
   • ICICI Bank
   • IndusInd Bank
   • IDFC Bank

NCCL shall not accept Fixed Deposit Receipts (FDRs) from members as collateral, which are issued by the Member themselves or Banks who are associates of member. Explanation - for this purpose, 'associate' shall have the same meaning as defined under Regulation 2 (b) of SECC Regulations 2012

Renewal letters

Renewals of the FDRs are the sole responsibility of the clearing members. In case of renewal of FDRs, the clearing members are required to furnish the renewal documents strictly in the prescribed formats.

Reminder letters through extranet

Reminder letters can be downloaded through the extranet in respect of the Fixed deposits that are due for renewal. These files are uploaded 30 days, 15 days and 8 days prior to maturity of Fixed deposit Receipt. This is being provided as an additional facility only and members are advised to submit the renewals of the fixed deposit receipts within the stipulated period to avoid any action.

Clearing Members may opt for giving bank guarantee in the specified formats from any approved banks towards liquid assets. Additionally, at the time of deposit of the bank guarantee, the clearing member is required to ensure the following:

1. The bank guarantee is strictly as per the formats prescribed by the clearing corporation
2. A bank guarantee for security deposit should be issued for a minimum period of 12 months with a claim period of 15 days. In case the issuing bank does not provide for a specific claim period beyond the expiry date in the bank guarantee, the benefit of such bank guarantee shall be reduced by 15 days.
3. A bank guarantee for margin deposit should have validity for a minimum period of 3 months with a claim period of 15 days. In case the issuing bank does not provide for a specific claim period beyond the expiry date in the bank guarantee, the benefit of such bank guarantee shall be reduced by 15 days.
4. While filling the details in a bank guarantee, clearing members shall ensure that:
   • No relevant portion is left blank
   • All handwritten corrections and blanks are attested by the bank by affixing the bank seal/stamp duly authorized
   • All irrelevant portions struck off on the printed format should also be authenticated by the bank by affixing the bank seal/stamp duly authorized.
   • Each page of the bank guarantee should bear the bank guarantee number, issue date, stamp of the bank and should be signed by at least two authorized signatories.
   • The clearing member should also ensure that the bank guarantee is free from any discrepancy before the same is submitted to the Clearing Corporation.
5. In case the bank guarantee does not strictly conform to the above-mentioned conditions, the same shall not be accepted by the Clearing Corporation and benefit for the same shall be made available only upon the bank guarantee being strictly in conformity with the prescribed requirements.
6. The acceptance of the bank guarantees by the clearing corporation shall be subject to the bank- limits as are stipulated from time to time.
7. Electronic Bank Guarantee NeSL’s Digital Document Execution (DDE) platform is a mode for paperless execution and storage of financial contracts. It enables e stamping and affix e-signing. It makes the contract execution process seamless, online, and in real-time provides multiple benefits to all stakeholders. E-BG reduces the time taken for the process of bank guarantee acceptance and eliminates issues related to paper-based documents. Please refer to circular no. NCCL/CLEARING-038/2024 dated July 19, 2024 for the following:
   • Issuance of new E-BG
   • Renewal of E-BG
   • Release of E-BG
   The list of Approved Banks who shall provide this facility to members is given below:
   1. Axis Bank
   2. ICICI Bank
   3. IDFC Bank
   4. Kotak Mahindra Bank Limited

SFMS Message for Bank Guarantee

As per Indian Bank’s Association banks are required to send a separate advice of the BG through Structured Financial Messaging System (SFMS). The SFMS messages are to be sent by the BG issuing Bank to the bank of the beneficiary of the BG for any new/modification of the BG.

Banks Approved for issuance of Bank Guarantees in favour of NCCL (Base Capital and Additional Base Capital) are required to send e-message id IFN 760 COV for any new Bank Guarantee and e-message id IFN 767 COV for any bank guarantee amendment (Renewal) through the SFMS Platform.

Members are advised to ensure that Banks issuing BG in favour of NCCL send e-messages through SFMS for all new issuance/renewals of the BG. Members shall ensure that SFMS message is sent by the issuing bank before the new/renewal BG is submitted to NCCL.

The beneficiary details of NCCL to be used for sending SFMS messages is as under:

Members may note that exposure towards new issuance/renewals of the bank guarantees shall be provided only after receipt of the SFMS message by NCCL

Renewal of Bank Guarantees

Clearing members are required to ensure that the renewal of the bank guarantee is submitted to the Clearing Corporation in the prescribed format well in advance before the date of expiry of the bank guarantee.

Reminder letters through extranet

Reminder letters can be downloaded through the extranet in respect of the Bank Guarantees that are due for renewal. These files are uploaded 30 days, 15 days and 8 days prior to maturity of Bank Guarantee.

This is being provided as an additional facility only and members are advised to submit the renewals of the Bank Guarantees within the stipulated period to avoid any action.

Member may request the Clearing Corporation to release deposits held by the Clearing Corporation. A web based facility NCFE is provided to members for submission of release requests of valid collaterals placed towards margin deposits , members may select the desired available collaterals for release.The Clearing Corporation may consider such request provided such Member has no outstanding obligations / positions / dues towards the Exchange or towards the Clearing Corporation if any, and that there is no other liability under the Rules, Byelaws and Regulations and that if the Clearing Corporation is of the opinion that such release does not entail any risk. The web based facility NCFE is provided for submission of release requests of collaterals.

All release requests received up to 4.30 p.m. are processed on the same day and the requests received after 4.30 p.m. will be processed on the next day. Incase of a Saturday, Sunday or a holiday at NCCL, clearing banks or any of the service providers, the release request will be processed next working day.

The representative of the members coming to collect released FDR/ BG is required to carry an authorization letter. The released Fixed Deposit Receipts / Bank Guarantees can be collected on the next working day of the release.

SEBI vide its circular SEBI/HO/MIRSD/DOP/CIR/P/2020/28 dated February 25, 2020 has provided a framework for margin obligations to be given by way of pledge / Re-pledge in Depository System.

1. NCCL has provided a Margin Pledge facility through which Clearing members shall be permitted to provide trading member proprietary securities/client securities towards the non-cash component of margin deposit requirements.
2. This facility is enabled through Margin Pledge facility provided by NSDL & CDSL.
3. Clearing members availing this facility can re-pledge client/trading member (TM) proprietary securities through Margin Pledge facility provided by NSDL & CDSL.
4. The margin pledge facility is also be applicable for Custodial Participant (CP) clients of clearing members.

1. Procedure for providing securities through Margin Pledge facility provided by NSDL & CDSL

• Clearing Member shall be required to open a separate demat account (“designated account”) with any Depository Participant of NSDL or CDSL.
• The designated account shall have a client sub type of CM – Client Securities Margin Pledge Account or TM/CM – Client Securities Margin Pledge Account in NSDL & CDSL
• Clearing Member shall ensure that designated account is solely used for the purpose of pledging/re-pledging securities in favour of NCCL. Any other use of designated account shall be treated as non-compliance and shall be dealt with accordingly.
• Clearing Member shall submit the following information to NCCL:
  1. Covering letter as per format provided in Format 1
  2. Client master of the designated account
  3. Pledge deed as per the format specified in Format 2
  4. Board Resolution with list of authorized signatories authorized to sign the pledge deed
• On submission of necessary documents as specified above NCCL shall enable the designated account for acceptance of pledge/re-pledge.
• Pledge instructions in respect of approved securities only shall be accepted.
• Details of NCCL demat account in favour of which the pledge/re-pledge will be created shall be informed separately
• UCC Details, TM Code, CP Code and segment as received in the pledge/re-pledge instructions from depositories shall be considered for allocating such securities towards margin requirement.
• In case of CP clients, clients/clearing member shall ensure that applicable CP code is populated in the pledge/re-pledge instructions as per the procedure prescribed by the depositories.
• Members are advised to be guided by the process issued by NSDL and CDSL from time to time.
• Details of Clearing Corporation (NCCL) accounts in whose favour the re-pledge have to be created are as under:

  Depository	DP ID	Account Number
  NSDL	IN001176	10000029
  CDSL	11000021	00002645

2. Procedure for release of client/TM proprietary securities

• Clearing member shall request for release of re-pledged securities in a prescribed format attached as Format 3
• If in case re-pledged securities requested to be released are utilized towards the margin requirement of the client/TM proprietary or TMs clients, then such securities shall be released only if there is sufficient collateral at the clearing member level to meet such margin requirements
• If the re-pledged securities are eligible for release, NCCL shall send necessary intimation to Depositories to release the re-pledge created in favour of NCCL.
• Upon release, securities will be available as free balance in the designated account of clearing member.

3. Services Charges

1. The Clearing Members availing the margin pledge facility shall be required to pay NCCL, a monthly fee of Rs 10,000/- (excluding GST) where count of TM and clients under respective clearing members using this facility is up to ten anytime during the month and Rs 20,000 (excluding GST) per month where count is more than ten anytime during the month. The TM placing their own shares shall be considered as a separate count for the purpose of levying charges.
2. In case of a default by the clearing member, NCCL after encashing the available collateral of clearing member, may invoke the re-pledged securities of client / TM proprietary to meet the loss/shortfall which may arise due to closing out the open positions of that client/TM or clients of TM.