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Clearing Members are permitted to deposit equity shares of approved companies, in electronic form ('demat securities') in the designated depository accounts maintained by the Custodians (HDFC Bank Ltd. / Stock Holding Corporation of India Ltd. (SHCIL)) towards base minimum capital. These securities are required to be pledged in favour of National Securities Clearing Corporation Limited.
The securities would be subject to a minimum margin of 15% on Nifty securities, and a minimum margin of 30% margin on other securities or such other margin percentage as may be decided by NSCCL from time to time.
NSCCL may revise the list of approved securities and the margins (haircuts) from time to time. Such changes would be notified to the clearing members.
Members who have deposited securities which have been discontinued from the list of approved securities, would be required to replace such securities within such time as specified by NSCCL.
The securities deposited, would be subject to the legal and beneficial ownership of the clearing member/ spouse, any of the partners/ their spouses or any of the directors, in case of individual, partnership or corporate clearing members respectively, as the sole/ first joint holder, provided no depositor of securities is a minor as on the date of deposit thereof.
In case of reconstitution / restructuring or any change in the partners /directors of the clearing member, as applicable, the clearing member would be required to replace the securities belonging to such outgoing partners /directors immediately and no benefit will be given by NSCCL for such securities towards base minimum capital.
The following securities are not accepted by NSCCL:
a) Partly paid securities
b) Securities subject to any lock in period, buy back scheme, any charge or lien, encumberance of any kind, or such other limitations or title is questioned before the court or any regulatory body.
Clearing members are required to open a separate depository account with the authorised Custodian i.e. HDFC Bank Ltd. / Stock Holding Corporation of India Ltd. (SHCIL) for deposit of securities.
Members who are individuals, may open an account in their own name/ their spouse's name. Members who are a partnership firm may open an account in their partners' or their spouses' names and members who are corporates may open an account in the corporate name or in the directors' names. However, these accounts are required to be separate and used for the purpose of such deposit only.
Clearing members who are interested in availing of this facility may get in touch with the officials of the Custodians to ascertain the modalities with regard to deposit of securities.
Clearing members providing demat securities would be required to mark a pledge of the securities in favour of NSCCL. In addition to any documents required by the authorised Custodian, the following documents are required to be provided to the authorised Custodian :
i. Deed of Pledge is to be executed as per specified format available with the authorised Custodian on a non-judicial stamp paper of the prescribed amount as applicable to an agreement of Deed of Pledge in the particular State in which it is executed.
In case the Deed of Pledge is executed outside the State of Maharashtra, the stamp duty payable in that particular State shall be payable, at the time of execution, and the Deed of Pledge shall be stamped for the differential amount within three months of its first receipt in the State of Maharashtra. The differential amount of stamp duty payable on such instrument shall be the amount of stamp duty in the State of Maharashtra, less the amount of stamp duty, if any, already paid under any law in force in India, when it was executed.
ii. Certified true copy of the relevant Board Resolution in case of Corporates in this regard.
Clearing members would give the necessary pledge instruction(s) to the Custodian for the securities to be pledged in favour of NSCCL. Once the securities are accepted and duly pledged by the Custodian, the Custodian shall inform NSCCL the value of the securities after adjusting the relevant margin percentages. On the basis of the Custodian's advice, benefit towards Base Minimum Capital would be provided to the member.
Valuation of securities would be done by the Custodians at regular intervals as specified by NSCCL.
The value of securities deposited would be reckoned at the last closing price/rate as being provided by National Securities Depository Ltd. (NSDL) to the Custodian prior to the date of deposit.
Valuation for this purpose will be done on the basis of the rates at the NSE or in the event of the securities not being traded in NSE, the rates at The 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 and failing which the last traded price at BSE, would be reckoned for this purpose. However, in case any security has not been traded during the six months preceding the date of valuation, the same will be excluded for the purpose of valuation. In case of securities subject to call or put option, the valuation shall be done on the basis of exercise price or last traded price on the valuation date, whichever is lower.
The above valuation would be reduced by the relevant margin percentage to arrive at the collateral value of the security. Only the value net of margins (hereinafter referred to as net value) would be considered as the value of the security deposit.
Where the entire non-cash deposit of a member comprises only of securities, the benefit provided to such clearing member would be only to the extent of valuation of securities as provided by the Custodian, or as applicable as per Base Minimum Capital requirement, whichever is lower.
Clearing members are required to ensure that the value of securities deposited, net of margin, does not fall below the required minimum value for which benefit towards Base Minimum Capital is provided to him/ them.
To ensure continued compliance, clearing members may deposit additional securities whenever required. However in case of any shortfall in the value of the securities, the clearing members are required to replenish such shortfall immediately or within such time as stipulated by NSCCL.
In case it is not possible for the clearing member to immediately deposit fresh securities to cover the value of the shortfall as required above, he may deposit cash/ FDRs/ bank guarantees to the extent of the shortfall amount.
Clearing members may from time to time, withdraw, replace or make fresh deposits of securities to the custodians subject to maintenance of the required minimum value of securities towards Base Minimum Capital.
NSCCL would consider such request provided such clearing member has no outstanding obligations/positions/dues towards NSCCL, there is no other liability under the Rules, Byelaws and Regulations and if NSCCL is of the opinion that such release does not entail any risk.
A clearing member camn make a requisition to NSCCL for withdrawal of specific securities provided that pursuant to withdrawal of the specified securities, the security deposit must be greater than the minimum requirement of security deposit by 10% of the post withdrawal value of securities as on the date of withdrawal.
On receipt of request from a clearing member relating to withdrawal of securities, NSCCL may in accordance with the provisions detailed above, instruct the authorised Custodian to release such specific securities. The Custodian then cancels the pledge marked in favour of NSCCL and release such securities to the clearing member.
The charges to be levied by Custodians for the above services relating to deposit of securities and the manner in which the payments are to be made will be as specified by the respective Depository Participants/Custodian.
Clearing members are required to pay the Custodian, by a cheque/ demand draft drawn in favour of the Custodian. The clearing members must pay the bills raised by the Custodian within 15 days of receipt of such bills. In case such bills are not paid within the period stipulated, appropriate action as may be decided by the relevant authority from time to time may be initiated against the concerned clearing member.
Fixed Deposit Receipts (FDRs) | Bank Guarantees (BGs)
Additonal Base Capital |
Deposits / Networth |
Margins |
NSCCL SPAN |
PC SPAN |
Payment of Margins
Position Limits & Violations |
Client Margin Reporting |
Formats
Scheme for FIIs trading
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