Liquid assets

Members are required to provide liquid assets which adequately cover various margins & base minimum capital requirements. Liquid assets of the member include their Initial membership deposits including the security deposits. Members may provide additional collateral deposit towards liquid assets, over and above their minimum membership deposit requirements

The acceptable forms of capital towards liquid assets and the applicable haircuts are listed below:

1. Cash Equivalents:

Cash

Bank fixed deposits (FDRs) issued by approved banks and deposited with approved Custodians or NSCCL

Bank Guarantees (BGs) in favour of NSCCL from approved banks in the specified format.

Government Securities. The procedure for acceptance and list of securities is as specified in circular. Applicable haircut is 10%.

Units of liquid mutual funds or government securities mutual funds as decided by NSCCL from time to time. Applicable haircut is 10%.

2. Other Liquid assets:

Liquid (Group I) Equity Shares in demat form, as specified by NSCCL from time to time deposited with approved Custodians. Haircuts applied are equivalent to the VaR margin for the respective securities.
Mutual fund units other than those listed under cash equivalents decided by NSCCL from time to time. Haircut equivalent to the VaR margin for the units computed using the traded price if available, or else, using the NAV of the unit treating it as a liquid security

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