Procedure for making full pay-in of funds on Settlement day
Members can make full pay-in of funds confirmation on settlement day before prescribed pay-in time by providing confirmation from their clearing banks towards their funds pay-in obligations. The procedure for the same is as given below:
- Members/Custodians can request for funds pay-in confirmations from the clearing bank on settlement day using the menu 'EMI-Full pay-in' provided in 'Collateral Interface for Members (CIM)'- an online facility provided to Members/Custodians.
- Members/Custodians can request for confirmation of full funds pay-in obligations from the clearing bank for the settlement due on the current day. If the members/custodians have already provided any early pay-in of funds prior to settlement day then they can request for confirmation of balance funds pay-in obligation. The funds pay-in amount (after considering early pay-in, if any) is automatically populated on selection of settlement number & settlement type.
- On confirmation by the clearing bank it is considered as fulfillment of funds pay-in obligation for the purpose of margin release.
- The clearing bank is required to provide the amount confirmed to Clearing Corporation towards funds pay-in at the stipulated time of funds pay-in for the settlement.
Exemption upon early pay-in of securities
In cases where early pay-in of securities is made prior to the securities pay-in, such positions for which early pay-in (EPI) of securities is made are exempt from margins. Members are required to provide client level early pay-in file in a specified format. The EPI of securities is allocated to clients having net deliverable position, on a random basis unless specific client details are provided by the member/ custodian. However, member/ custodian shall ensure to pass on appropriate early pay-in benefit of margin to the relevant clients. Additionally, member/custodian can specify the clients to whom the early pay-in may be allocated.
Exemption upon early pay-in of funds
- In cases where early pay-in of funds is made prior to the funds pay-in, such positions for which early pay-in (EPI) of funds is made shall be exempt from margins subject to bank confirmation.
- Members/Custodians shall make early pay-in funds through a screen-based request in the Collateral Interface for Members (CIM). The facility for making early pay-in of funds will be separate from the facility of allocation of the early pay-in of funds which can be done either through Screen based request or file upload.
- Members/Custodians may provide early pay-in of funds from any of their settlement accounts.
- Early pay in of funds may be allocated at client level or at client-security level. The allocation can be revised through a screen based request or through the file upload facility in the specified format.
- Members can make early pay-in of funds along with details of client-security allocation before execution of a trade and shall be able to avail the benefit of early pay-in of funds on execution of the trade.
- Where no allocation is made, Early pay in of funds would be allocated against the clients in the descending order of their net buy value of outstanding positions.