Base Capital/Security Deposit

The Clearing Members are required to maintain Base Capital as prescribed by NCCL at the time of admission, which shall be used for giving exposure to the members. The Base Capital comprises of Interest Free Cash Security Deposit and Collateral Security Deposit. The Interest Free Cash Security Deposit is required to be deposited in form of Cash and Collateral Security Deposit can be deposited in form of Cash, Fixed Deposit Receipts / Bank Guarantees.

Additional Base Capital / Margin Deposit

In case the members desire to increase their limit, additional capital may be submitted to the clearing corporation in the following forms:

  • Cash
  • Cash Equivalent:
    I. Bank Guarantee (BG)
    II. Fixed Deposit Receipt (FDR)
  • Approved securities in Demat form deposited with approved Custodian(s)
  • Approved Mutual Funds Units in demat form deposited with approved Custodians(s)
  • Bullion (Gold and Silver) in Demat form deposited with approved Custodian(s).
  • Approved Gold Exchange Traded Fund (ETF) in Demat form deposited with approved Custodian(s)
  • Approved Agricultural Commodities in electronic form deposited with approved Custodians (s)

The minimum cash component (cash and cash equivalent) shall be 50%

Minimum Liquid Net worth

All Clearing Members shall be required to maintain a Minimum Liquid Net-worth of at least Rs 50 Lakhs at all points of time. Accordingly, an amount of Rs 50 lakhs shall be blocked from existing deposits placed by the members towards Minimum Liquid Net-worth requirement and no exposure will be allowed on such blocked amount.

Clearing member’s liquid assets after adjusting for applicable margins shall be referred to as ‘Liquid Net-worth’ of the clearing member. Initial margins, ELM, additional margins or any other margins as may be specified by SEBI from time to time shall be deducted from the liquid assets of a clearing member to arrive at ‘Liquid Net-worth’ of member.