>   Liquid Assets
Liquid Assets
1.1 Composition of Liquid Assets

Eligible Participants in SLBS may deposit liquid assets in the form of cash and cash equivalent i.e. bank guarantees and fixed deposit receipts of scheduled commercial banks only. Other forms of acceptable liquid assets may be prescribed by ICCL from time to time.


1.2 Procedure for depositing various types of collateral deposits towards Liquid Assets Cash Deposits:



For enhancement of cash collateral towards liquid assets, the Clearing Members need to send their online instruction in respect of same through the on-line web-based facility BEFS Module to their respective Clearing Banks for confirmation of such request for enhancement of cash collateral.

Alternatively, in case of any contingency the Clearing Members and their designated Clearing Banks may at their discretion avail the facility of manual updations of cash collateral. For this purpose, the members may instruct their Clearing Banks to confirm the cash collateral deposits to the ICCL through written mode viz. Fax, letters or email. Based on such written confirmations received from the Clearing Banks, the cash collateral deposits of the members will be manually updated in the system by the ICCL.

Fixed Deposit Receipts (FDRs)


Renewal of FDRs: A Participant may renew the FDRs deposited towards Liquid Assets by submitting a renewal letter from the concerned bank along with a covering letter by the Participant in the prescribed format.

Bank Guarantee ("BGs")

The BGs issued by Scheduled Commercial Banks may be deposited along with a covering letter of the Participant in the prescribed format. ICCL shall accept the instrument along with the letter/s if the same are in order and provide the benefit in respect of same to the concerned Participant after confirming the details of the said instrument with the issuing bank.

A Participant can deposit bank guarantee(s) with/without the claim period. In such cases i.e., 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 Participant at least seven days before the expiry date of the bank guarantee(s) or such other period as may be specified by ICCL from time to time.



Renewal of BGs: Participants may renew the BGs deposited towards Liquid Assets by submitting to ICCL, a renewal letter from the concerned bank along with a covering letter by the Participant in the prescribed format.

1.3 Procedure for submission of release request of Liquid Assets
 

Participants can place their on-line requests for release of Liquid Assets deposited by them with ICCL to the extent of available collateral which is not utilised/blocked towards margins and/or other obligations of the Participant through the ICCL collateral management module ("CLASS") provided to them. Such requests may be considered by ICCL, subject to no lien being exercised by ICCL pursuant to the applicable Rules, Byelaws and Regulations and subject to the availability of the collateral after adjusting for due fulfilment of all obligations and liabilities arising out of or incidental to any transactions/deals made by the Participant as a clearing member and/or trading member or anything done in pursuance thereof.

Participants can log-in to the web-based Collateral Module and submit their requests for release of available collaterals. 1.4 Transfer of collateral from SLBS segment to another trading segment  

Participants can avail online transfer of collateral to another segment in which it is a clearing member of ICCL, to the extent of the available amount of unutilised collateral (collateral which idle or is not utilised/blocked towards margins and/or other obligations of the Participant).

In case of collateral lying in the form of bank guarantees, the same would be available for transfer by the Participant to another segment in which it is a clearing member of ICCL, only after submission of a letter from the concerned bank to ICCL.

The evaluation of collateral transfer across segments will be subject to the criteria/norms in respect of the concerned segments as specified by SEBI/BSE/ICCL in this regard from time to time.