© Copyright 2018. All rights reserved. National Commodity Clearing Limited. (NCCL)
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.
Fixed Deposit Receipts
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 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.
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
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
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.
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.
Approved Securities and GOLD ETF
Members are permitted to deposit equity shares of approved companies, units of mutual funds and Gold ETF in electronic form (Demat Securities’) in the designated depository accounts maintained by the approved custodians of the clearing corporation. These equity shares and mutual funds units shall be pledged in favour of National Commodity Clearing Limited. The securities and Gold ETF shall be subject to a minimum margin as may be decided by NCCL from time to time. NCCL may issue/revise the list of approved securities and Gold ETF and the margin requirements from time to time.
Members who have deposited securities and Gold ETF which have been discontinued from the list of approved securities and Gold ETF shall be required to replace such securities within such time as may be specified by NCCL.
The securities are valued based on the closing price of the security at NSE or in the event of the securities not being traded in NSE, the rates at Bombay Stock Exchange, Mumbai (BSE). In case a security is not traded in either of these stock exchanges on the date of valuation, the last traded price at NSE shall be considered and failing the same, the last traded price at BSE would be reckoned for this purpose. However, in case any security is not traded during the six months preceding the date of such valuation, the same will be excluded for the purpose of valuation. The valuation of units of the mutual funds shall be done on daily basis based on the NAV of the mutual fund scheme. The valuation of units of Gold ETF will be done on the basis of the rates at the National Stock Exchange of India Limited (NSE). However, in case any security is not traded during the six months preceding the date of such valuation, the same will be excluded for the purpose of valuation. The above valuation shall be reduced by the relevant margin percentage to arrive at the collateral value of the securities and Gold ETF units. Only the value net of margins so arrived (hereinafter referred to as `net value’) shall be considered as the value of such securities and Gold ETF units. Valuation shall be done by the approved Custodians daily or at such regular intervals and in such manner as may be specified by NCCL.
Members are permitted to deposit gold or silver (hereinafter referred to as “Bullion”) and approved Agricultural Commodities as additional base capital (ABC) in the designated accounts to be maintained with the Custodian approved/appointed by NCCL in this regard. These commodities shall be pledged in favour of National Commodity Clearing Limited to secure performance of all obligations of the member under the Rules, Bye laws, Regulations and directions of NCCL from time to time.
The Commodities to be pledged should be of same quality specification which is deliverable under the contract specification of Commodities being traded on the Exchange. The Commodities shall be subject to a minimum margin (haircut) as may be decided by NCCL from time to time. No exposure shall be permitted on Agricultural Commodities from one month (30 days) prior to validity period of such Agricultural Commodity. The value of Additional Base Capital made available against the agricultural commodity already pledged shall be reduced accordingly, one month (30 days) prior to validity/ EDD of any such pledged stock, whichever is earlier or as applicable.
The value of the Commodities deposited as collateral will be reckoned daily at the spot prices provided by NCCL to the approved Custodian(s). In case the spot prices are not available for a given day, the latest spot price which is available will be used for the purpose of valuation. The valuation shall be reduced by the relevant margin percentage (haircut) to arrive at the collateral value of Commodities. Only the value net of margins / net value so arrived shall be considered as the value of Commodity for the purpose of margin Deposit. Valuation of Commodity shall be done by the approved Custodians daily or at such regular intervals and in such manner as may be specified by NCCL.
Release of Liquid Assets
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 9.00 a.m. are processed on the same day and the requests received after 9.00 a.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.
Collection of released collaterals submitted to NCCL
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.