Membership - Introduction and Eligibility Criteria

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Introduction

The Membership Department admits & activates various entities as Members or Associates Members of CCIL's various business segments to enable clearing and settlement of their deals through CCIL.

Member, including Associate Member is an entity admitted as Member of Clearing Corporation under its Bye -laws, Rules and Regulations to transact business under any of its segments and does not denote the shareholders of Clearing Corporation. Provided that shareholders of Clearing Corporation may also be admitted as Members of Clearing Corporation. A Member of any segment may clear and settle Trades pertinent to that segment through Clearing Corporation in such manner and mode as may be prescribed by Clearing Corporation.

Members may transact, clear and settle Trades either on their own account or on behalf of the constituents unless otherwise specified by Clearing Corporation from time to time.
CCIL have prescribed elaborate and objective requirements for the Members participating in clearing & settlement system of CCIL. The minimum eligibility criteria prescribed for various business segments are as under

Minimum Financial Eligibility criteria for grant of CCIL membership

Further to the Notification No. CCIL/MEM/SS/13/12 dated 09^th April 2013, members are hereby advised that there is a revision in the minimum financial eligibility criteria applicable for grant of CCIL membership to any CCIL Business Segment as under with effect from 04^th October, 2023.

Sr. No	Member Category	Financial Criteria
		Minimum Networth	Solvency Margin	Minimum Assets Under Management	Net NPAs
1	Mutual Fund	-		Rs. 200 /- crores
2	Cooperative Banks	Rs. 25/- crores	-	-	Maximum 5%
3	Insurance Companies	Rs. 200/- crores	As prescribed by the Insurance Company Regulator
4	NBFC, Payments Bank, Financial Institutions, Small Finance Banks , Primary Dealers, Provident Funds & Trusts/ Statutory Corporation, Other Corporates	Rs. 200/- crores	-	-	-

The Securities Segment

The following minimum eligibility criteria shall apply for grant of Membership to the "Securities" segment of Clearing Corporation: The applicant shall:
	1. be a Bank/ Financial Institution /Primary Dealer/ Mutual Fund Payments Bank/ Small Finance Bank/ NBFC/ Insurance Company or a Statutory Corporation or a body corporate including a Company as defined in the Companies Act, 2013 or any entity as may be permitted from time to time by Reserve Bank of India to access its E-Kuber or Negotiated Dealing System- Order Matching (NDS- OM) segment or any part thereof;
	2. have opened SGL Account or Gilt Account;
	3. have opened a Current Account with the Reserve Bank of India / Settlement Bank; Provided however that Clearing Corporation may relax the requirement of the maintenance of Current and SGL Accounts in respect of the Members;
	4. be a Member of RBI–E-Kuber and INFINET;
	5. not have any record of repeated failure in complying with the regulatory requirements;
	6. not have been subject to an order of statutory disqualification or an order of similar effect issued by any regulatory authority;
	7. have adequate risk management systems in place and shall have qualified personnel in its employment
	8. fulfilled Capital Adequacy norms / Minimum Net Worth requirements as laid down by their respective regulators; if no such norm is prescribed or if the applicant is exempted from fulfilling the same, then the applicant shall have adequate Net Worth to support the scale of operations undertaken or proposed to be undertake. The financial eligibility criteria shall be applicable to respective category of entities as notified by Clearing Corporation.
	9. be a profitable organization (must have reported operating profits in atleast two out of three financial years immediately preceding the date of application); provided that Clearing Corporation at its discretion may exempt any entity as specified in point No. (1) above, and from the requirement of point no. 8 & 9 above

Triparty Repo under Securities Segment
The following minimum eligibility criteria shall apply for grant of Membership to the Triparty Repo under Securities Segment :
*(A)Triparty Repo under Securities Segment (NDS Members)*
The eligibility criteria for ad mission of members to the Triparty Repo segment shall be the same as applicable for admission to Securities Settlement Segment.
*(B) Triparty Repo under Securities Segment (Associate Members)*
The eligibility criteria for being considered for admission as an Associate Member to Triparty Repo under CCIL's Securities Segment are:
	1.be eligible to undertake Triparty Repo trade
	2.open GILT Account with Clearing Corporation;
	3.maintain Current Account with a bank(s) identified as settlement bank(s) by Clearing Corporation for settlement of transaction(s
	4.be familiar with treasury operations;
	5.have experienced and qualified personnel in its treasury and/or finance departments who have the requisite experience required for undertaking trading, clearing and settlement operations;
	6.have adequate risk management systems in place;
	7.not have any record of failure in honoring its obligations to the market intermediary, which shall be duly certified by its internal auditors;
	8.not have been subject to an order of statutory disqualification or an order of similar effect issued by a regulatory authority;
	9.be a profitable organization and must have reported net profits in atleast preceding three financial years;
	10.have sufficient tangible net worth which in the opinion of Clearing Corporation is adequate to support its proposed level of activities in money market / treasury operations. The financial eligibility criteria shall be applicable to respective category of entities as notified by Clearing Corporation;

The FOREX Segment

The following eligibility criteria shall apply for grant of Membership to the "FOREX" segment of Clearing Corporation. The applicant shall:

1.be an Authorized Foreign Exchange Dealer;

2.have a current account with the Reserve Bank of India for settlement of transactions in Indian Rupees;

3.have Nostro Account(s) with its Correspondent(s);

4.have adequate risk management systems and policies in place and qualified personnel in its employment;

No entity shall be admitted as a Member of Clearing Corporation if:

1.proceedings for winding up have commenced or if it has been ordered to be wound up or a provisional liquidator/receiver/official liquidator has been appointed for such an entity;

2.has compounded with its creditors for less than full discharge of debts save if such acts of compounding as are carried out in the normal course of its business as a part of a restructuring process;

3.has been barred by an order of a Court/Government/Regulatory body for any violation of law;

4.has been at any time declared a defaulter under any Law or by any regulatory body;

5.has been previously refused admission to Clearing Corporation unless the period of one year has elapsed since the date of last rejection;