Leading bourse NSE will allow market participants to transfer collaterals placed in the form of cash and fixed deposit receipt from securities lending and borrowing schemes (SLBs) to other segment and vice-versa on an intra-day basis from September 19.
The decision will facilitate participants in optimising the utilisation of idle collateral deposits.
In a circular, National Stock Exchange (NSE) said that participants would be permitted to transfer collaterals placed in form of cash and FDRs “from/to SLBS to/from other segment on an intra-day basis”.
The facility of intra-day transfer would be available for cash and fixed deposit receipt (FDR) provided towards margin deposit.
The exchange said intra-day transfer would be available subject to maintenance of minimum deposits as per regulatory requirement.
“Participants can verify the details of the request for transfer and its status in CIM (collateral interface for member) under menu option ‘Collateral Release–New Request /inquiry- Transfer Inquiry,” NSE said.
Besides, market participants would be permitted to place 51 approved securities as liquid assets towards the margin requirements in securities lending and borrowing schemes.
They would deposit these approved securities in electronic form (demat securities) in depository accounts maintained with authorised custodians — HDFC Bank, ICICI Bank, Axis Bank, IL&FS Securities Services and Stock Holding Corporation of India.
These securities would be pledged in favour of the exchange’s clearing corporation NSCCL (National Securities Clearing Corporation Ltd). The clearing corporation can revise the list of approved securities and the haircuts from time to time.