Indian Clearing Corporation Ltd, an arm of BSE, has decided to pay to its members interest at the rate of four per cent per annum on cash collateral maintained in the equity derivatives and currency derivatives segments, from April 3. At the same time, ICCL has also decided to begin levying clearing charges on per trade basis on the members, from Monday (April 3). The move was announced by stock exchange BSE through two separate circulars recently. “Clearing members are requested to take note that with effect from April 3, 2017, ICCL, shall pay interest at the rate of 4 per cent per annum on cash collateral maintained in the equity derivatives segment and currency derivatives segment,” BSE said.
The interest would be calculated on a weekly basis on the cash collateral maintained throughout the week in both the derivative segments.
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In a separate circular, BSE said that ICCL would levy clearing charges at the rate of Re 0.01 per trade on the clearing members. The charges would be applicable on all trades cleared in the equity cash, equity derivatives and currency derivatives segment of BSE. Invoices with respect to the charges and the applicable service tax would be generated on monthly basis for payment, BSE said in a recent circular. ICCL carries out the functions of clearing, settlement, collateral management and risk management for various trading segments of BSE. The Clearing Corporation is recognised under market regulator Sebi’s regulations for stock exchanges.
Clearing members generally have the responsibility of clearing and settlement of all deals executed by brokers on the stock exchanges.