What is utilization of borrowing limit?
Borrowing in CBLO segment results in utilisation of borrowing limit. The utilised portion of the borrowing limit of a member at the end of a day would be equal to the aggregate face value of the outstanding CBLO borrowings in the account of such member. During the day, orders placed in the auction market are also treated as utilisation. Securities covering the face value of the outstanding CBLO borrowings are blocked in the member’s account as security for the borrowing.
