NSE empanels HDFC Bank to accept FDRs in electronic form

Leading bourse National Stock Exchange (NSE) has empanelled HDFC Bank for submitting Fixed Deposit Receipts (FDRs) issued as collateral to trading members in electronic form.

In a circular, NSE said it has added HDFC Bank to the empanelled list to provide this facility to members.

Besides, HSBC is already empanelled for providing this service.

NSE's clearing corporation arm, in December, introduced a facility for banks to submit FDRs issued as collateral in electronic form.

The move will help in eliminating the loss of physical papers and reducing fraudulent activities.

To avail this facility, trading members are required to request the bank to create FDRs and mark lien in favour of National Securities Clearing Corporation Ltd (NSCCL).

For the creation of FDR, trading members need to submit documents, including primary member code of the segment and Security Deposit or Margin Deposit and segment for which the FDR is required, to the bank.

Consequently, the bank will send the information in electronic form to NSCCL and the clearing corporation firm will validate and pass on the benefit of the same to the member.

Further, the clearing corporation will send a system generated e-mail and SMS to the member.