Clearing members are permitted to deposit bank guarantee in the prescribed format from any approved bank. The minimum term of the bank guarantee should be 12 months with a specific claim period of at least 3 months. A bank guarantee deposited by a member, which has expired, shall be excluded for the purpose of computing the benefit provided to such member towards Base Minimum Capital.

However, where an issuing bank does not provide for a specific claim period beyond the expiry date in the bank guarantee, the clearing members shall submit a bank guarantee for a minimum period of 15 months (prescribed format). Such bank guarantees, shall be excluded for purpose of computing Base Minimum Capital, during the last 3 months of the validity period of the bank guarantee.

Clearing members are required to ensure that the prescribed format is used by the bank for purpose of issue of bank guarantees.

While filling the details in a Bank Guarantee, members shall ensure that :

1. No relevant portion is left blank



2. All handwritten corrections and blanks are attested by the bank by affixing the bank seal/stamp alongwith the signature of at least one authorised signatory.



3. All irrelevant portions struck off on the printed format should also be authenticated by the bank by affixing the bank seal/stamp alongwith the signature of at least one authorised signatory.



4. Each page of the bank guarantee should bear the bank guarantee number and should be signed by at least one authorised signatory of the bank.



5. The clearing member should also ensure that the bank guarantee is free from any discrepancy before the same is submitted to Clearing Corporation.

In case the bank guarantee does not strictly conform to the above-mentioned conditions, the same shall not be accepted by NSCCL and benefit towards Base Minimum Capital shall be made available only upon the bank guarantee being strictly in conformity with the prescribed requirements.

Clearing members may submit bank guarantees only to the extent prescribed below in relation to the net-worth of the issuing bank:

Networth of Issuing Bank (Rs.crores)	Maximum Value of BGs* (Rs.crores)
100 to 200	5
200 to 500	10
500 to 1000	15
1000 to 3000	20

*Maximum Value of BGs that can be given from the Issuing Bank per clearing member

Over Rs.3000 crores, for each Rs. 1000 crores of networth, an incremental limit of Rs. 10 crores per Clearing Member is allowed.

In respect of bank guarantees issued by the below designated clearing banks, the maximum value of bank guarantees that can be accepted shall be set at the next higher slab in which they would have ordinarily been, compared with their net worth. It may however be noted that in compliance of SEBI guidelines, no fresh bank guarantees or renewal of existing bank guarantees issued by Global Trust Bank shall be accepted till further notice.

1. Canara Bank
2. HDFC Bank
3. Global Trust Bank
4. Indus Ind Bank
5. ICICI Bank
6. UTI Bank
7. Centurion Bank
8. Bank of India
9. IDBI Bank
10.Standard Chartered Bank


Renewal of Bank guarantee

In case of renewal of bank guarantees with a specific claim period, the clearing members shall furnish the renewal document strictly in the prescribed format at least 3 working days before the date of expiry of the bank guarantee.

In case of bank guarantees without a specific claim period, the clearing members should ensure that renewal document is submitted 3 months and 3 days before the expiry of the bank guarantee.

If the renewal document does not provide for a specific claim period, then the bank guarantee should be for a minimum period of 15 months. (prescribed format)

The clearing members may also opt to give a fresh bank guarantee in favour of National Securities Clearing Corporation Limited instead of renewing the expired bank guarantees.

In case the renewed bank guarantees/ fresh bank guarantees are not submitted within the above mentioned periods whereby the member does not fulfill the base minimum capital requirements, appropriate disciplinary action would be initiated.

Fixed Deposit Receipts (FDRs) | Approved securities