Procedure for allotment/transfer of CP Code
Allotment of new Custodial Participant (CP) Code / Mapping of existing CP Code.
Indian Clearing Corporation Ltd. (ICCL) provides a facility of give-up/confirmation of trades for settlement by Custodians/Clearing Members in RTRMS Module. For this purpose the Clearing Members are required to map the CP Codes of all the clients who have appointed them as clearing members, in the ICCL system. The Clearing Members can use the CP code assigned to the client by any existing Exchange/Clearing Corporation or request ICCL to allot a new CP code for give-up/confirmation process. Further, in case the Clearing member is different from the existing Custodian, then a NOC is required from the custodian.
In case, a client wish to change from one Clearing Member to another Clearing Member, then a No Objection Certificate needs to be obtained from the existing Clearing Member and the same should be submitted along with a letter, by the new Clearing Member. The trading member can accordingly use the mapped CP code of the client, at the time of placing an order in the trading system.
All the trades executed on behalf of a CP code client are required to be confirmed by their respective Clearing Members mapped in RTRMS module (and not by the Clearing member of the Trading member through whom the trades were executed), within the specified time, using the confirmation facility provided by ICCL. Till such time, the trade is confirmed by the Clearing member of the CP, the same is considered as a trade of the Trading member and the responsibility of settlement of such trade vests with the Clearing member of the Trading member. Once the trades have been confirmed by the Clearing member of the CP code client, they form part of the obligations of the Clearing member of the CP code client and they shall be responsible for all obligations arising out of such trades including the payment of margins and settlement of obligations.
The formats of the letters to be submitted for different purposes are given below:-
Procedure for change in CM
- Admission of existing Clearing Member registered with any other Exchange/CC in any segment.
SEBI vide its circular SEBI/HO/MIRSD/MIRSD1/CIR/P/2017/104 dated September 21, 2017 integrated the Broking activities in Equity Market and Commodity Segment under Single entity.
- As per this circular restriction on stock brokers dealing in securities (other than commodity derivatives) to deal in commodity derivatives has been done away with. Similarly, restriction on stock brokers dealing in commodity derivatives to deal in other securities has also been done away with. Therefore, post these amendments, a stock broker can deal in commodity derivatives and other securities under a single entity.
- Further, the existing trading members/clearing members in any Stock Exchange or Clearing Corporation (including ICCL) in any segment will be admitted as Clearing Members or Self Clearing Members with ICCL in Commodity Segment as "Additional Segment", as per the provisions of SEBI circular no. CIR/ MIRSD/ 4/ 2014 dated October 13, 2014 in respect of Single registration of Stock brokers and Clearing members, by granting the approvals by ICCL only.
- Admission of Clearing Member who is not registered with any Exchange/CC in any segment.
The application of Members in this category will be first approved by ICCL as a new member and thereafter the same would be sent to SEBI for approval and issue of a registration certificate in the name of member.