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.
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.
Table 1.1 Composition of Liquid Assets
|Cash in USD
|Bank Fixed Deposits Receipts (FDRs) in USD
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, equivalent to INR 50 Lakhs, at all points in time, after adjusting the initial margin and exposure margin requirements.
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 in USD and / or FDRs in USD
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.
Clearing Members can place their on-line requests for release of cash deposited as Liquid Assets by them with INDIA ICC to the extent of available collateral which is not utilised/blocked towards margins and/or other obligations of the member through the collateral module provided to them. Such requests may be considered by INDIA ICC, inter alia, subject to availability of un-utilised collateral of the member after due adjustments for the fulfilment of all obligations and liabilities of the member towards INDIA ICC/INX as per the Bye Laws, Rules and Regulations of INDIA ICC/INX or anything done in pursuance thereof.
Clearing Members can log-in to the web-based collateral module of INDIA ICC and submit their requests for release of available cash collaterals. No separate letter would be required to be submitted for the same.
Clearing Members can deposit FDR(s) issued by a clearing bank branch 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 and also with a letter from the concerned bank addressed to India ICC in the format given in Annexure - II.
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. The renewal letter should be submitted along with a covering letter by the Clearing Member in the prescribed format given in Annexure – IV.
Clearing Members may withdraw the FDRs deposited towards liquid assets by submitting a request letter with details of FDR for withdrawal to India ICC. India ICC will duly discharge the FDR and request bank to withdraw lien marked in favor of India ICC and credit proceedings along with interest in members account.