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Minimum Base Capital

A clearing member (CM) is required to meet the base minimum capital (BMC) requirements prescribed by NSCCL before activation. The CM has also to ensure that BMC is maintained in accordance with the requirements of NSCCL at all points of time, after activation.Every CM is required to maintain BMC of Rs.50 lakhs with NSCCL in the following manner: - Rs.25 lakhs in the form of cash. - Rs.25 lakhs in any one form or combination of the below forms:

1.Cash

2. Fixed Deposit Receipts (FDRs) issued by approved banks and deposited with approved Custodians or NSCCL

3. Bank Guarantee in favour of NSCCL from approved banks in the specified format.

4. Approved securities in demat form deposited with approved Custodians.

In addition to the above MBC requirements, every CM is required to maintain BMC of Rs.10 lakhs, in respect of every trading member(TM) whose deals such CM undertakes to clear and settle, in the following manner:- Rs.2 lakhs in the form of cash.- Rs.8 lakhs in a one form or combination of the following:

1. Cash

2. Fixed Deposit Receipts (FDRs) issued by approved banks and deposited with approved Custodians or NSCCL

3. Bank Guarantee in favour of NSCCL from approved banks in the specified format.

4. Approved securities in demat form deposited with approved Custodians.

Any failure on the part of a CM to meet with the BMC requirements at any point of time, will be treated as a violation of the Rules, Bye-Laws and Regulations of NSCCL and would attract disciplinary action inter-alia including, withdrawal of trading facility and/ore clearing facility, closing out of outstanding positions etc.

Additional Base Capital

Clearing members may provide additional margin/collateral deposit (additional base capital) to NSCCL and/or may wish to retain deposits and/or such amounts which are receivable from NSCCL, over and above their minimum deposit requirements, towards initial margin and/ or other obligations.Clearing members may submit such deposits in any one form or combination of the following forms:

1. Cash

2. Fixed Deposit Receipts (FDRs) issued by approved banks and deposited with approved Custodians or NSCCL

3. Bank Guarantee in favour of NSCCL from approved banks in the specified format.

4. Approved securities in demat form deposited with approved Custodians.

(Edited extracts from NSE Web site)

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