• Cash - A Clearing Members may submit deposit in the form of cash by making the required amount available in their respective clearing bank account and sending an authorization to the Clearing Corporation/Clearing Bank for transferring said amount from their clearing account to the account of the clearing corporation. Clearing Corporation has provided an electronic interface to its clearing banks and Clearing members for enhancement of cash deposits towards margin requirement of clearing member. Members are also required to maintain Rs. 50 lakhs or 50% of the liquid assets whichever is lower in the form of cash deposits.
• Bank guarantees - Clearing Members may submit Bank guarantees issued by approved banks in prescribed format towards liquid assets. List of approved banks and prescribed format is available on MCCIL website.

• Bank fixed deposit receiptsClearing Members may submit Fixed Deposit receipts issued by approved banks towards liquid assets. Clearing members are required to submit lien letter and bank lien confirmation letter in prescribed format.

• Government Securities (G-Sec) & Treasury bill (T-Bills)Clearing Member/Custodian desirous of providing G-Sec/Treasury Bill shall enter into an agreement with MCCIL as per the specified format. Clearing Corporation shall prescribe list of G-Sec/T-Bills that shall be eligible for acceptance as collateral from time to time. Both the above liquid assets shall be accepted as collateral only in electronic form.
• Units of Liquid Mutual FundsClearing Members may deposit Open Ended Liquid Mutual Funds Units available in dematerialized form pledged in favour of MCCIL with approved custodian towards liquid assets. The valuation of units of the mutual funds shall be done daily using NAV (Net Asset Value) of the mutual fund scheme with a haircut of 10% plus Exit Load, if any.

All other forms of collateral deposits like deposit of approved list of demat securities and units of the other mutual funds and any other form of collateral as may be prescribed by MCCIL, from time to time.

Equity shares and Exchange Traded Funds (ETFs) as collateral:

• Clearing Members can deposit equity shares of approved companies and ETFs in electronic form ('Demat securities') in the designated depository accounts maintained by the Custodian(s) approved/appointed by the MCCIL in this regard. These securities shall be pledged in favour of MCCIL.
• The securities shall be subject to a minimum margin / hair cut as specified by MCCIL from time to time.  The custodian does the valuation of the said securities pledged after applying the hair cut specified.
• MCCIL may issue / revise the list of approved securities and the margin / haircut requirements from time to time.
• The securities will be accepted from a Clearing Member with the upper limits (Net of haircut) as will be decided by MCCIL, from time to time.
• In case of discontinuation of a security from the list of approved securities, the valuation of such securities will be reduced from the additional security deposit. In such case, Clearing Members are advised to replace such security with eligible securities within two working days.

Ownership of Securities:

• The securities that may be deposited shall be subject to the beneficial ownership of the Clearing Member, any of the partners or any of the directors of the Clearing Member, in case of individual, partnership or corporate members respectively as the sole/first joint holder, provided no depositor of securities shall be a minor as on the date of deposit thereof.
• In case of reconstitution/restructuring or any such change in the partners/directors of the Clearing Member, as applicable, a Clearing Member shall be required to replace the securities belonging to such outgoing partners or directors solely or jointly, as the case may be, immediately and no benefit shall be given for such securities towards Additional Margin Deposits or such similar requirements

Securities not acceptable:

• Securities not as per the approved list;
• Partly paid up securities;
• Securities subject to any lock in period, buy back scheme, any charge or lien, encumbrance of any kind or whose title is questioned before a Court or any regulatory body or such other limitations.

Opening of accounts:

• Clearing Members are required to open a separate demat account with the approved custodian(s) of MCCIL for depositing securities.
• For this purpose, Clearing Members, who are individuals, may open an account in their name if securities offered are held in their names. Clearing Members who are a partnership firm may open an account in their partners' names if securities are held in the names of the partners as the case may be, and Clearing Members who are corporate body may open an account in the corporate name or in the name of their designated directors as the case may be depending upon the beneficiary of securities. However, these accounts are required to be separate and used for the purpose of such deposit of securities only.
• Clearing Members who are interested in availing of this facility may get in touch with the officials of the approved Custodian(s) to ascertain the modalities with regard to deposit of securities.

• Deed of pledge is to be executed in the format prescribed by the MCCIL and available with the approved custodian(s) on a non-judicial stamp paper of Rs.200/-
• Certified true copy of the relevant Board Resolution in case of a corporate body.
• Clearing Members and the joint holders, if any, shall give the necessary pledge instruction(s) to the approved Custodian for the securities to be pledged in favour of MCCIL. Once the securities are accepted and duly pledged by the approved Custodian, the approved Custodian shall inform MCCIL the value of the securities after adjusting the relevant margin percentages / haircut as stipulated by MCCIL and the same shall be considered as additional margin deposit.

Release of Collaterals: MCCIL may consider the request for release provided:

• Such Clearing Member has no outstanding obligations / positions / dues towards MCCIL if any, and that there is no other liability under the Rules, Bye-Laws and Regulations of MCCIL, and
• MCCIL is of the opinion that such release does not entail any risk.

The web based facility of My Exchange is provided for submission of release requests of collaterals. The members may select the desired available collaterals for release.

Every clearing member of the Clearing Corporation in Equity Derivatives segment is required to maintain Minimum Deposit in the following manner.

Every clearing member of the Clearing Corporation in Currency Derivatives segment is required to maintain Minimum Deposit in the following manner.

Procedure for Acceptance of G-Secs and T-Bills towards Liquid Assets

SGL Mode:

• The Clearing Member (CM) who intend to provide G-Sec/T -Bills as liquid assets shall enter into an agreement with Metropolitan Clearing Corporation of India Ltd. (MCCIL) as per the format specified.
• The list of G-Sec/T -Bill eligible for acceptance as collateral will be prescribed from time to time by MCCIL.
• The G-Sec/T-Bill shall be accepted only in dematerialised form. Hence, the clearing members who intend to tender G-Sec/T-Bill as collateral shall send their request to MCCIL Mumbai, as per the format specified. The member shall further be required to enter the transaction through their custodian/bank on e-Kuber Online RBI Portal under Margin Transfer before 4.00 pm. MCCIL shall confirm the transaction entered on the e-Kuber Online RBI Portal, based on the information received from the member.
• The details of CSGL account of MCCIL are as follows:
  • Name of the Account: Metropolitan Clearing Corporation of India Ltd.
  • SGL Account Number: 00621100003/ SG159164
• The clearing members as and when required shall send a request for release of G-Sec / T-bills to in the format specified. The release of G-Sec/T-Bill shall be processed only at the end of day. The G-sec/T-bill released by MCCIL shall be entered on e-Kuber Online RBI Portal under Margin Transfer. The members shall ensure that such transactions are approved on e-Kuber Online RBI Portal by their Custodian/Bank.
• Any benefits / periodic coupon / redemption payments received on the G-Sec/T -Bills which were transferred by members into the SGL account of MCCIL shall be distributed / passed on to the relevant members by MCCIL upon receipt from Reserve Bank of India.
• In case any of the approved G-Sec is in ‘SHUT PERIOD’, the members shall not be allowed to request for addition / release of such G-Sec.
• Valuation shall be done on a daily basis using FIMMDA prices. A haircut of 10% shall be applied on the value of G-Sec/T-Bill provided as collateral by the clearing member. The value after applying the hair cut shall be added to the cash component of the liquid assets of the member.

Depository Pledge Mode:

• The Clearing Member (CM) who intend to provide G-Sec/T -Bills as liquid assets shall enter into an agreement with Metropolitan Clearing Corporation of India Ltd. (MCCIL) as per the format specified.
• Members who are interested to place approved securities i.e. T-Bills, G-Secs as collaterals in demat form in pledge mode may get in touch with the approved custodians of the Clearing Corporation. The contact details of the approved custodians are given below.
• The list of G-Sec/T -Bill eligible for acceptance as collateral will be prescribed from time to time by MCCIL.
• The clearing members as and when required shall send a request for release of G-Sec / T-bills to in the format specified. The release of G-Sec/T-Bill shall be processed only at the end of day. The G-sec/T-bill released by MCCIL shall be forwarded to custodian to unmark the pledge.
• In case any of the approved G-Sec is in ‘SHUT PERIOD’, the members shall not be allowed to request for addition / release of such G-Sec.
• Valuation shall be done on a daily basis using FIMMDA prices. A haircut of 10% shall be applied on the value of G-Sec/T-Bill provided as collateral by the clearing member. The value after applying the hair cut shall be added to the cash component of the liquid assets of the member.

List of Custodians for acceptance of Securities as Collaterals