Client Collateral Segregation

Overview:

SEBI vide circular SEBI/HO/MRD2_DCAP/CIR/2021/0598 dated Jul 20, 2021 issued guidelines for the client collateral segregation framework in order to further strengthen the mechanism of protection of client collateral from:

• misappropriation/ misuse by TM/ CM and 
• default of TM/CM and/or other clients,

In order to provide visibility of client-wise collateral at all levels, viz., TM, CM and Clearing Corporation (CC), a reporting mechanism where by Clearing Members are required to report disaggregated collateral information (segment-wise and asset type wise break-up) of each client on daily basis in the following manner:

• TM shall report disaggregated information on collaterals up to the level of its clients to the CM.
• CM shall report disaggregated information on collaterals up to the level of clients of TM and proprietary collaterals of the TMs/CM to the CCs in respect of each segment.     
   

Timelines for submission:

• Clearing Members shall report collateral segregation data on T+1 basis before 23:59:59 hours.

Frequently Asked Questions (FAQ):

Members are requested to refer to the frequently asked questions pertaining to reporting to client collateral as below:

FAQ for Segregation and Monitoring of Collateral at Client Level_0.pdf     
 

Members may refer to the following circulars issued in this regard:

Web Portal facility to clients:

Client Collateral Details:

Further, with a view to providing visibility of client-wise collateral and in compliance with SEBI circular no. SEBI/HO/MRD2_DCAP/CIR/2021/0598 dated July 20, 2021, NSE Clearing has provided a web portal facility to allow clients to view their disaggregated collateral placed with Member and as reported by their registered Trading Member /Clearing Member.

Investors needs to get registered in order to view the client collateral data.  

Investors may refer to the Circular No. NCL/CMPL/49348 dated September 29,2021 for registration and viewing the collateral data in the website.

Futures Equivalent Open Interest Details :  

NCL disseminates Symbol wise Futures Equivalent Open Interest details at client level (Client Level Delta OI) to its Clearing Members and Trading Members on a daily basis in the form of a report. Further, with a view to providing higher visibility to clients, NSE Clearing has provided a web portal facility to allow clients to view their Futures Equivalent Open Interest details.

In order to view the Client Collateral & Futures Equivalent Open Interest details, please find the below link:   

Click here to access the web portal