Initial Security Deposit

The members of MCXCCL are required to pay interest free security deposit as prescribed by MCXCCL at the time of admission, which will be used as margin for giving exposure to the members. The same shall be given minimum 50% in the form of Cash and balance can be in the form of Fixed Deposit Receipts / Bank Guarantees.

 Additional Security Deposit

Members may submit the request for additional deposit in the form of cash by making the required amount available in their respective clearing bank account and sending an authorization to MCXCCL / Clearing Bank for transferring the said amount from their settlement account to the settlement account of MCXCCL.
MCXCCL has provided an electronic interface to its Clearing Bank and Clearing Members for enhancement of additional cash margin. Clearing Members mapped with Clearing Banks shall submit online cash margin request through eClear application. Cash Inward request shall be valid for processing by the Clearing Bank on the request date only. These instructions shall then be electronically transmitted to their Clearing Banks for processing. In case the member is not able to submit the request through eClear, Member can also send request through e-mail as per the prescribed format.

Format for Increase of Additional Cash Deposit

Member intending to seek release of additional cash deposit shall be required to submit the online cash release request through option available on eClear. Alternatively member can send the release request as per the specified format.

Online Cash release

Format for Release of Additional Cash Deposit 

Members may opt for giving bank guarantee in the specified formats, from any approved banks towards initial & additional deposit.

 Guideline for Bank Guarantee

• The acceptance of the Bank Guarantees (BGs), Fixed Deposit Receipts (FDRs) and Securities by the Clearing Corporation shall be subject to the bank-wise and member-wise limits stipulated from time to time. Members are advised to check the bank-wise available limits and maximum allowable limits per member limit before placing additional collateral deposits in the form of Bank Guarantees, Fixed Deposit Receipts and securities of approved banks.
• Bank Guarantee should be in the favour of ‘Multi Commodity Exchange Clearing Corporation Limited’ from Approved Banks in the specified format.
• BG has to be on Non-Judicial stamp paper of minimum Rs.100/- or the value prevailing in the State where executed, whichever is higher.
• Bank Guarantee for Initial Security deposit should be for a minimum period of 12 months with a specific claim period of minimum 30 days. If an issuing bank does not provide a specific claim period beyond the expiry date, the maturity period of such Bank Guarantee shall be reduced by 30 days before the expiry date of Bank Guarantee, which shall be deemed as a claim period.
• Bank Guarantee for Additional Deposit should be for a minimum period of 3 months, with an additional specific claim period of minimum 15 days.
• All the blanks in the format are required to be duly filled/ cancelled, wherever necessary, by the issuing bank along with their stamp and signature against each blank, if filled separately.
• Each page of the bank guarantee should bear the bank guarantee number and signed by two authorized signatories of the bank.
• Expiry date and Claim period should be mentioned in BG.
• Endorsement of any correction / Hand written instructions on the BG is required.
• The clearing member should also ensure that the bank guarantee is free from any discrepancy before the same is submitted to the MCXCCL.
• BG shall be created and submitted in compliance of MCXCCL Circular No. MCXCCL/C&S/105/2023 dated April 25, 2023, regarding Bank Guarantees (BGs) created out of clients’ funds. Clearing Members shall be required to submit an undertaking in prescribed format.
• Electronic Bank Guarantee: MCXCCL in collaboration with National E-Governance Service Limited (NeSL) provides the facility for accepting Electronic Bank Guarantees (E-BG). Members can approach banks empanelled by MCXCCL for issuance of E-BG. The bank guarantee shall be strictly in the format prescribed by MCXCCL. (Existing format for BG in physical form shall continue for E-BG)
• Members are required to ensure that Banks issuing BG in favour of Multi Commodity Exchange Clearing Corporation Limited shall send e-messages through SFMS for all new issuance/ renewals of the BG. Members shall ensure that SFMS message is sent by the issuing bank before the new/ renewal BG is submitted to Clearing Corporation. The exposure towards new issuance/ renewals of the bank guarantees shall be provided only after receipt of the SFMS message by Clearing Corporation.
• Member shall provide following Beneficiary details of MCXCCL to Issuing Bank for sending the e-message through SFMS.

• Prescribed formats for submitting BG:
  • For issue of Fresh Bank Guarantee
  • For renewal of existing Bank Guarantee
  • Bank Guarantee Undertaking

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

  List of approved Banks for submission of Bank Guarantee

  List of Banks eligible for issuance of E-BG

  AU Small Finance Bank Ltd, Axis Bank Ltd, HDFC Bank Ltd, ICICI Bank Ltd, IDFC First Bank Ltd, Indusind Bank Ltd, Kotak Mahindra Bank Ltd, RBL Bank Ltd and Yes Bank MCXCCL has entered into the Master Agreement and accordingly the formats are available below.

  Format for issue of fresh Bank Guarantee as per Master Agreement

  Format of Renewal of Bank Guarantee as per Master Agreement

  Members intending to seek additional margin BGs released, shall be required to submit the request through option available on eClear. Member release request shall be processed shall be subject to compliance of margin and deposit requirements.

  Online release of Bank Guarantee

  Authorisation Format for Hand Delivery of BG

Members can submit Fixed Deposit Receipt approved by MCXCCL for the purpose of initial & additional deposit.

 Guideline for Fixed Deposit Receipt

• The acceptance of the Bank Guarantees (BGs), Fixed Deposit Receipts (FDRs) and Securities by the Clearing Corporation shall be subject to the bank-wise and member-wise limits stipulated from time to time. Members are advised to check the bank-wise available limits and maximum allowable limits per member limits before placing additional collateral deposits in the form of Bank Guarantees, Fixed Deposit Receipts and securities of approved banks.
• FDR should be in the name of “Multi Commodity Exchange Clearing Corporation Limited A/c Member Name” or “MCXCCL A/c Member Name” from approved banks in the specified format.
• The FDR’s placed with MCXCCL and lien marked in favour of MCXCCL shall be from the funds / accounts of the Clearing Members only.
• FDR should be accompanied by the Lien letter from the bank as well as the member. The lien letter shall be strictly in the format prescribed by MCXCCL.
• Endorsement by the member – On the reverse of FDR stamp affixed and signed.
• Endorsement by the Banks - Any correction / Hand written instructions on the FDR.
• The tenor of FDR created out of client funds shall not be more than one year and one day and the FDR should be pre-terminable on demand.
• In case of FDRs with maturity date of more than 1 year 1 day and created (fresh/ renewal) out of proprietary funds of SBs/CMs and SB’s proprietary funds deposited with CM in the capacity of a client, Clearing Members shall be required to submit an undertaking in prescribed format.
• The FDR should be issued for minimum period of 3 months in case of additional margin deposit and for a minimum period of 12 months in case of initial security deposit.
• The e-FDR should be issued for a minimum period of 7 days for additional margin deposit and for a minimum period of 12 months for initial security deposit.
• MCXCCL prescribed formats for Submitting FDR:
  • For Member Lien Letter
  • For Bank Lien Letter
  • Fresh FDR
  • Renewal FDR (with old FDR no.)
  • Renewal FDR (with new FDR no.)
  • Fixed Deposit Receipt Undertaking
  • List of approved Banks for submission of FDR
• Member can additionally provide FDR in electronic format (e-FDR).

List of approved banks for issuance of e-FDR.

The process for issuance of Fresh / Renewal of e-FDR is as below:
• Members who wish to avail the facility shall approach the bank to create / renew FDR and mark lien in favour of MCXCCL
• Members shall submit the required documents to the bank for creation of FDR and marking the lien. Additional information to be provided by the member to bank is given below :
• Member Code
• For Deposit Type as Initial Security Deposit, Margin Deposit, Bank shall issue / renew FDR and mark lien in favour of MCXCCL
• Bank shall send FDR information in electronic form to MCXCCL
• MCXCCL validates the FDR information and, if found correct, the benefit of the same shall be passed to the member
• MCXCCL shall not accept Fixed Deposit Receipt (FDRs) from members as collateral, which are issued by the member themselves, or banks who are associate of member. Explanation – for this purpose, ‘associate’ shall have the same meaning as defined under Regulation 2 (b) of SECC Regulations 2018.

Members intending to seek additional margin FDRs released, shall be required to submit the request through option available on eClear. Member release request shall be processed shall be subject to compliance of margin and deposit requirements.

Online release of FDR

Authorisation Format for Hand Delivery of FDR

Members can pledge Securities, Government Securities, T-Bills and Mutual Fund (MF) units approved by MCXCCL in demat form as collateral towards additional deposit under the Margin Pledge -Re Pledge facility provided by NSDL and CDSL. A deed of pledge is required to be executed with MCXCCL in specified formats.

 Guidelines for pledge of Securities and Mutual Funds (MFs) Units

• Members shall open a separate demat account with any depository participant of NSDL or CDSL. The account shall have client sub type of CM- Client Securities Margin Pledge Account (CM-CSMPA) or TM/CM Client Securities Margin Pledge Account (TM/CM-CSMPA) in NSDL or CDSL. For the process of opening the ‘Client Securities Margin Pledge Account’, Members are advised to be guided by the process issued by the depositories from time to time
• Member shall ensure that designated demat account is used for the purpose of pledging/re-pledging securities only as specified in SEBI circular SEBI/HO/MIRSD/DOP/CIR/P/2020/28 dated February 25, 2020.
• Clearing Member shall submit the following information to MCXCCL.
  • Pledge deed
  • Letter for margin pledge account
  • Client master of the designated account.
  • Board Resolution with list of authorized signatories authorized to sign the pledge deed.
  • • On submission of necessary documents as specified above MCXCCL shall enable the member account for acceptance of margin pledge/re-pledge.
    • Details of MCXCCL accounts for pledge and re-pledge are as under

     

    Depository	DP ID	Account number
    NSDL	IN001184	10000012
    CDSL	11000022	00000211

    
    
    • Securities, Government Securities, T-Bills and MF units shall be pledged / Re Pledged in favour of 'Multi Commodity Clearing Corporation Limited'.
    • Securities shall be subject to the various limits (security level, member level, bank level limit in case of approved bank, and cash to non-cash ratio) prescribed by MCXCCL from time to time.
    • It shall be subject to a minimum margin / hair cut as specified by MCXCCL from time to time.
    • MCXCCL may issue / revise the list of approved securities from time to time.
    • The value of the securities deposited will be reckoned at the last closing price / rate every day. The valuation shall be done on daily basis.
    • The value shall be subject to such haircut as may be prescribed by MCXCCL from time to time.

    Haircut for Approved Securities

    Haircut for Approved Mutual Funds

    Clearing member seeking release of pledged or re-pledged securities shall place release request through eClear. Clearing Member can also submit a letter for withdrawal of the own or client pledged or re-pledged securities. Member release request shall be processed shall be subject to compliance of margin and deposit requirements.

    Format for Release of Securities additional Deposit

Members can deposit eligible securities in form of Central Government of India Securities (G-Sec) and Treasury bills (T-bills) towards additional deposit.

 Guidelines for pledge of Government Securities and T-Bills

• Member desirous of providing G-Sec / T-Bills shall execute a document as per the prescribed format.
• Details of MCXCCL accounts:
  • 1. Account Name: Multi Commodity Exchange Clearing Corporation Limited.
    2. CSGL Account No: 52663900001
• The securities shall be subject to a minimum margin / hair cut as specified by MCXCCL from time to time.
• Only approved G–Sec, T-Bill prescribed by MCXCCL from time to time shall be accepted as collateral in electronic form.
• Member shall be required to enter the transaction through its custodian / bank on e–Kuber under ‘Margin Transfer Module’ provide the details of such G–Sec, T-Bill transaction.
• Based on the information received from Member, MCXCCL shall confirm the transaction entered on E–Kuber and the benefit of G–Sec, T-Bill provided as collateral shall be accounted.
• Valuation of G-Sec, T-Bill and SGB shall be done on a daily basis.
• G-Sec/T-bill shall be subject to a haircut as specified by MCXCCL from time to time.

Format for addition of G–Sec/T-Bills as margin deposit (E–Kuber)

Clearing Member shall submit a letter for release of G-Sec, T-Bills. Member release request shall be processed shall be subject to compliance of margin and deposit requirements. The G–Sec shall be released by MCXCCL through E–Kuber “Margin Transfer Module”. The member shall ensure that such transactions are approved on E–Kuber by their Custodian / Banks on the same day.

Format for release of G–Sec/T-Bills as margin deposit (E–Kuber)

Members can pledge electronic warehouse receipt(s) (WR) of commodities approved by MCXCCL towards additional deposit. A deed of pledge is required to be executed with MCXCCL in specified formats.

Format for electronic warehouse receipts pledge deed

Guidelines for pledge of Electronic Warehouse Receipts

• Members have to pledge electronic warehouse receipts in favour of Multi Commodity Exchange Clearing Corporation Limited.
• Members shall pledge/ re-pledge electronic warehouse receipts / eNWRs (Electronic Negotiable Warehouse Receipts) of approved commodities in ComRIS / CCRL (CDSL Commodity Repository Limited) through their RP (Repository Participant).



ComRIS:- Clearing Members (CM) shall initiate Pledge / Re-pledge request in its ComRIS account by capturing details of Recipient (Pledgee) as “MULTI COMMODITY EXCHANGE CLEARING CORPORATION LIMITED”.

CCRL:- Clearing Members shall create pledge/ re-pledge through their Repository Participant (RP) for approved commodities in favour of Multi Commodity Exchange Clearing Corporation Limited Client ID 180000110000025.

• The valuation shall be done on daily basis.
• The value shall be subject to such haircut as may be prescribed by MCXCCL from time to time.
• The WR(s) will be accepted from a member with upper limits or such amount as may be decided by MCXCCL from time to time. The net haircut value of approved commodities shall not exceed 30% of the total liquid assets of clearing member, out of which non-bullion collateral shall not exceed 15% of the total liquid assets of the clearing member.
• MCXCCL may issue / revise the list of approved commodities and the haircut requirements from time to time.

Member seeking release of pledged or re-pledged electronic warehouse receipts shall place release request through eClear. Clearing Member can also submit a letter for withdrawal of the own or client pledged or re-pledged receipts. Member shall be required to create unpledged request in ComRIS / CCRL. Member release request shall be processed shall be subject to compliance of margin and deposit requirements.