Whether the deals beyond the exposure limit are accepted?
At present, trades that fall beyond concerned members’ risk exposure limits are accepted without guarantee (vis-à-vis such members) for settlement by the Clearing Corporation. Trades once accepted without guarantee would qualify for guaranteed settlement only upon receipt of additional contributions to the concerned member’s SGF to cover the shortfall at the time of breach in exposure limit. The members can make intra-day deposit of cash and securities into their Settlement Guarantee Fund towards expected intra-day margin shortfall which are accounted for provisionally on the basis of Notice of Deposits received by CCIL from the members. The securities are valued based on CCIL’s Mark to Market (MTM) price of the previous day, after accounting for haircut.
