You are here: Home » Markets » News
Business Standard

ICCL to pay 4 per cent interest on cash collateral

BSE said ICCL would levy clearing charges of Re 0.01 per trade on the clearing members


Press Trust of India  |  Mumbai 

BSE, Sensex, stock, share

Indian Clearing Corporation Ltd, an arm of BSE, has decided to pay to its members interest at the rate of four per cent per annum on cash collateral maintained in the equity derivatives and currency derivatives segments, from April 3.

At the same time, has also decided to begin levying clearing charges on per trade basis on the members, from Monday (April 3).

The move was announced by stock exchange BSE through two separate circulars recently.

"Clearing members are requested to take note that with effect from April 3, 2017, ICCL, shall pay interest at the rate of 4 per cent per annum on cash collateral maintained in the equity derivatives segment and currency derivatives segment," BSE said.

The interest would be calculated on a weekly basis on the cash collateral maintained throughout the week in both the derivative segments.

In a separate circular, BSE said that would levy clearing charges at the rate of Re 0.01 per trade on the clearing members.

The charges would be applicable on all trades cleared in the equity cash, equity derivatives and currency derivatives segment of BSE.

Invoices with respect to the charges and the applicable service tax would be generated on monthly basis for payment, BSE said in a recent circular.

carries out the functions of the clearing, settlement, collateral management and risk management for various trading segments of BSE.

The Clearing Corporation is recognised under market regulator Sebi's regulations for stock exchanges.

Clearing members generally have the responsibility of clearing and settlement of all deals executed by brokers on the stock exchanges.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, March 30 2017. 15:22 IST