>   Liquid Networth / Assets
Liquid Networth / Assets
Deals executed on the India International Exchange (IFSC) Limited (INDIA INX) are eligible to be cleared and settled through India International Clearing Corporation (IFSC) Limited (INDIA ICC) unless specifically deferred or not allowed to, or rejected from admission by the relevant authority.

1.1 Collateral Composition

Clearing Members of the INDIA ICC may deposit liquid assets in the form of cash in USD or Bank Fixed Deposits Receipts (FDRs) in USD or Bank Guarantees in USD.

Table 1.1 Composition of Liquid Assets
Eligible Collateral Hair-cut Concentration Limit
Cash Component: Cash & Cash Equivalent
Cash in USD No haircut No Limit
Bank Fixed Deposits Receipts (FDRs) in USD* No haircut No Limit
Bank Guarantee in USD* No haircut No Limit

*Issued by bank branches located at IFSC

1.2 Minimum Liquid Assets

The Clearing Member shall meet with the minimum liquid assets requirements prescribed by INDIA ICC at all points of time.

Every Clearing Member is required to maintain with INDIA ICC, Minimum Liquid Networth (MLN) in the form of cash in USD, equivalent to INR 50 Lakhs, at all points in time, after adjusting the initial margin and exposure margin requirements.

1.3 Additional Liquid Assets

Clearing Members may deposit additional liquid assets at any point of time based on the composition of Liquid Assets as detailed above. Additional liquid assets can be deposited by the member either in the form of Cash, FDRs or Bank Guarantees.

1.4 Procedure for submission of Cash deposits towards Liquid Assets

For depositing cash towards liquid assets, the Clearing Members need to send their online instruction through Collateral Module to their respective Clearing Banks who would confirm such request for enhancement of cash collateral to India ICC.

INDIA ICC has provided an on-line facility (Collateral Module) to members for sending instructions to Clearing Banks for enhancement of cash collateral.

Through the said facility, members can place their on-line requests to their designated Clearing Bank during the specified timings for enhancement of cash collateral. The concerned Clearing Banks have also been provided the on-line web-based facility for confirmation of such cash collateral enhancement requests. Based on the request forwarded by the member, the respective Clearing Banks may confirm or reject the enhancement of cash collateral request received by them.

1.5 Procedure for release of Cash collateral deposited towards Liquid Assets

Clearing Members can place their on-line requests for release of cash deposited as Liquid Assets by them with INDIA ICC to the extent of available collateral which is not utilised/blocked towards margins and/or other obligations of the member through the collateral module provided to them. Such requests may be considered by INDIA ICC, inter alia, subject to availability of un-utilised collateral of the member after due adjustments for the fulfilment of all obligations and liabilities of the member towards INDIA ICC/INX as per the Bye Laws, Rules and Regulations of INDIA ICC/INX or anything done in pursuance thereof.

Clearing Members can log-in to the web-based collateral module of INDIA ICC and submit their requests for release of available cash collaterals. No separate letter would be required to be submitted for the same.

1.6 Procedure for submission of Fixed Deposit Receipts

Clearing Members can deposit FDR(s) issued by a clearing bank branches located in IFSC towards liquid assets. The FDRs deposited by the Clearing Members should be issued in favour of "India International Clearing Corporation (IFSC) Ltd. A/c – Trade Name of the Clearing Member" and should be duly discharged by the Clearing Member himself or an authorised signatory of the member on the reverse of the FDRs. The FDR needs to be deposited along with a covering letter of the Clearing Member in the format given in Annexure - I (FDRs) and also with a letter from the concerned bank addressed to India ICC in the format given in Annexure – II (FDRs).

1.7 Renewal of Fixed Deposit Receipts

Clearing Members may renew the FDRs deposited towards liquid assets by submitting a renewal letter from the concerned bank in the prescribed format given in Annexure – III (FDRs). The renewal letter should be submitted along with a covering letter by the Clearing Member in the prescribed format given in Annexure – IV (FDRs).

1.8 Withdrawal of Fixed Deposit Receipts.

Clearing Members may withdraw the FDRs deposited towards liquid assets by submitting a request letter with details of FDR for withdrawal to India ICC. India ICC will duly discharge the FDR and request bank to withdraw lien marked in favour of India ICC and credit proceedings along with interest in members account.

1.9 Procedure for submission of Bank Guarantees (BGs)

Clearing Members can deposit Bank Guarantees (BGs) issued by bank branches located at IFSC towards Liquid Assets in the prescribed format as given in Annexure – V (BGs). The BG may be deposited along with a covering letter of the Clearing Member in the format as given in Annexure – VI (BGs). Clearing Members can deposit bank guarantee(s) with/without the claim period. In cases where bank guarantee(s) are submitted without a claim period, the amount of the bank guarantee(s) would be removed from the liquid assets of the member at least seven days before the expiry date of the bank guarantee(s) or such other period as may be decided by India ICC from time to time.

1.10 Procedure for Renewal / Withdrawal of BGs

Clearing Members may renew the BGs deposited towards Liquid Assets by submitting a renewal letter from the concerned bank in the prescribed format given in Annexure – VII (BGs). The renewal letter should be submitted along with a covering letter by the Clearing Member in the prescribed format given in Annexure – VIII (BGs). The clearing members shall furnish the renewal document strictly in the prescribed format before the date of expiry / maturity date of the bank guarantee. The members may also opt to give a fresh bank guarantee in favour of India International Clearing Corporation (IFSC) Ltd. instead of renewing the expired bank guarantees. For withdrawal of BGs members are requested to submit a letter in the prescribed format given in Annexure – IX (BGs).