abhishreshthaa
Abhijeet S
Collateral Management
Collateral Management comprises of managing, maintaining and valuing the collateral in the form of cash, cash equivalents and securities deposited with the exchange.
The following stipulations have been laid down to the clearing corporation on the valuation and management of collateral:
:SugarwareZ-075:
Collateral Management comprises of managing, maintaining and valuing the collateral in the form of cash, cash equivalents and securities deposited with the exchange.
The following stipulations have been laid down to the clearing corporation on the valuation and management of collateral:
- At least weekly marking to market is required to be carried out on all securities.
- Debt securities of only investment grade can be accepted.10% haircut with weekly mark to market will be applied on debt securities.
- Total exposure of clearing corporation to the debt or equity of any company not to exceed 75% of the Trade Guarantee Fund or 15% of its total liquid assets whichever is lower.
- Units of money market mutual funds and gilt funds shall be valued on the basis of its Net Asset Value after applying a hair cut of 10% on the NAV and any exit load charged by the mutual fund.
- Units of all other mutual funds shall be valued on the basis of its NAV after applying a hair cut equivalent to the VAR of the units NAV and any exit load charged by the mutual fund.
- Equity securities to be in demat form. Only Group I securities would be accepted. The securities are required to be valued / marked to market on a daily basis after applying a haircut equivalent to the respective VAR of the equity security.
:SugarwareZ-075: