Is a security, offered as collateral for borrowing in CBLO market, considered for SLR purpose?
As per clarification received from Reserve Bank of India, out of the total amount of securities lodged in the CSGL account with CCIL, only such portion of the security which is adequate to cover the borrowing of a member in CBLO segment (i.e. encumbered securities) would not be considered for SLR purposes. Remaining securities could be considered for SLR purposes. CCIL makes available a memberwise report, “Status of collateral Deposits”, as at the end of each day to clearly indicate the securities which are non-encumbered and hence, can be counted for SLR purposes.
Related Questions
- When industrial assets are offered towards collateral security for additional loans such as working capital term loans, why is the value of machinery not considered in the valuation of assets ?
- Why corporation is not considering market value for valuation of collateral security ?
- What is the purpose of a test security procedure?
