8/14/2019 NCFM Trainning - CM Chapter 2

1/15

8/14/2019 NCFM Trainning - CM Chapter 2

2/15

Clearing Corporation (NSCCL)

epos tor es ,

Demat form DP

- -

8/14/2019 NCFM Trainning - CM Chapter 2

3/15

Determination of Obligation

-

Pay-out of Funds and Securities

8/14/2019 NCFM Trainning - CM Chapter 2

4/15

8/14/2019 NCFM Trainning - CM Chapter 2

5/15

SettlementAgencies

. at ona ecur t es ear ng orporat on t . respons eforpostmarkettrades.

2. ClearingMembers istradingmemberonbehalfoftrader(Angelbroking)3. Custodians Responsibleforsettlementoftrades(Securities/Funds)

asprescribed

by

NSCCL

4. ClearingBanks settlementoffundsobligatedbyNSCCL&custodian5. Depositories SettlementofSharesobligatedbyNSCCL&custodian

6. ProfessionalClearingMembers (PCM) issameascustodians.Heclears

the

trade

of

trading

member

and

institutional

clients.

8/14/2019 NCFM Trainning - CM Chapter 2

6/15

NSCCLreceivestradin datafromNSE

NSCCLdetermines

Cumulative

Obligation

of

each

member

andtransfersdatatotheClearingMember

NetPosition(Funds/Securities)

Clearing

Members

put

funds

/

securities

in

the

respective

pay

NSCCLsweepsfunds/securitiesfromthepayinaccountof

DeliveringMember(0930 1030)

NSCCLcredits

funds

/securities

to

the

pay

in

account

of

ReceivingMember(200PM 230PM)

8/14/2019 NCFM Trainning - CM Chapter 2

7/15

Auction in case of Shortage

Before 930 AM930 AM

Clearing

AccountMemberNSCCL

2:30 PM

After 2:30 PM

8/14/2019 NCFM Trainning - CM Chapter 2

8/15

Penal charges if Funds Shortage

Before 11 AM11 AM

Clearing

AccountMemberNSCCL

1:30 PM

After 1:30 PM

8/14/2019 NCFM Trainning - CM Chapter 2

9/15

Trading Day Buying / Selling T

Settlement Pay-in / Pay-out T+2

Auction T+4 (BSE)

Settlement T+5 (NSE)

8/14/2019 NCFM Trainning - CM Chapter 2

10/15

Auction

/

Close

OutShortdeliveriesofSecuritiesgointoAuction

AuctionPrice

+1%

Penalty

debited

to

defaulting

seller

Max.allowableBidprice=Prev.DayClose+20%

OriginalBuyergetssharesonT+5day

IfnobodybidsforAuction,Closeoutdone @Highest

.

gets

credited

to

original

buyer.

8/14/2019 NCFM Trainning - CM Chapter 2

11/15

99%Variance

MarktoMarket(MTM)Margin

DifferencebetweenTradePrice&Closingprice

Definedas

Notional

Loss

incurred

if

all

positions

of

TMsquaredofatclosingpriceoftherespective

scripts

8/14/2019 NCFM Trainning - CM Chapter 2

12/15

.

Turnover(Buy

+Sell)

Grossexposure

8.5xfreecapital

(IffreeCapitalRs.1Cr.

8/14/2019 NCFM Trainning - CM Chapter 2

13/15

UniqueNo.

to

identify

the

script

8/14/2019 NCFM Trainning - CM Chapter 2

14/15

Settlementof

claims

wherein

the

Trading

Non payment

/non

receipt

of

securities

Max.claimRs.10lacks

8/14/2019 NCFM Trainning - CM Chapter 2

15/15

Corporates

Shouldnot

have

been

convicted

for

Fraud

Shouldnothavebeenexpelled/declaredadefaulterbyanyotherStockExchange

Shouldnot

have

been

debarred

by

SEBI,

RBI

etc.