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What is Mark-to-Market Shortfall?

April 26, 2017mark-to-market shortfall

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What is Mark-to-Market Shortfall?

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The securities deposited as collateral with CCIL for trading in the CBLO segment, are subjected to Mark-to-Market valuation on a daily basis as part of the EOD process. When the value of the underlying collateral declines on account of such mark-to-market valuation so that it is insufficient to cover the amount borrowed against it in the CBLO segment, mark-to-market shortfall occurs.