BSE Collateral Format
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Collateral Format

BSE has initiated several risk management measures in order to maintain the safety of the market and to avert defaults by the BSE Members in meeting their payment and delivery obligations. The core of the risk management system is the liquid assets deposited by the Members with BSE. Members are required to maintain the requisite collateral at all times, to fulfill margin requirements. The members can deposit the collateral for various margin requirements in the ratio prescribed which can be in the form of Cash, Bank Guarantee, FDR and eligible securities.
  • The cash can be deposited by the Members towards capital by submitting instructions to their clearing banks to debit their bank accounts and credit the amount to BSE's account.
  • As regards the Fixed Deposit Receipts (FDRs) of banks, the duly discharged FDRs are required to be submitted by the Members to BSE in the name of " ICCL A/c - trade name of the Member" issued by any Mumbai-based branch or payable at any Mumbai-based branch of any scheduled commercial or co-operative bank.
  • The Bank Guarantees submitted by the Member towards the capital have to be in the approved format in favour of BSE either issued or payable by any Mumbai-based branch of a scheduled commercial bank only. However, in case FDRs/ bank guarantees are issued by the outstation branches of scheduled commercial banks (i.e., branches outside Mumbai), the payment of the proceeds on encashment of FDRs and invocation of bank guarantees by BSE has to be assured by a Mumbai-based branch of the concerned issuing bank.
  • The valuation of shares deposited by the Members with BSE is done on a daily basis, and a hair-cut equivalent to the respective VaR of individual Security is applied i.e., only the residual value of eligible shares deposited is considered for the purpose of evaluation of capital(collateral) deposited by the Members with BSE.. The eligible shares deposited by the Members towards BMC are accepted by BSE in demat form only.