Collateral Requirements

Collateral requirement for Lending

The margin rates for Repo deals shall be arrived at based on Value at Risk or such other model as may be decided by Clearing Corporation from time to time and the resultant factors shall be expressed as a percentage of the face value of the repo transaction. Clearing Corporation may set different margin rates for Repo deals having different maturity periods.

The margin obligations for Repo deals of a Clearing Member shall be computed by multiplying the net position of each maturity with the corresponding margin rates as applicable for the Clearing Member and then aggregating the margin obligations.

To begin with the margin rate applicable for Lend Repo deal shall be 0.50% on the Lent amount. The collateral blocked shall be the margins applicable to the extent of net lend position for each maturity date within the each eligible security / basket as decided by Clearing Corporation from time to time.

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Collateral requirement for Borrowing

Collateral Revaluation

Early pay-in of funds

Rollover of Borrow Positions

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