The Bank is clearing banker to cash and F & O segments of National Stock Exchange of India Ltd. (NSE) and The Stock Exchange, Mumbai (BSE). Bank extends following credit facilities to the members of these exchanges subject to Bank’s internal credit norms, which is framed on the lines of guidelines issued from time to time by RBI.
Issue of financial guarantees on behalf of brokers favouring NSE / BSE to meet base capital, security deposit and margin requirements.
Overdraft against shares to meet temporary cash flow mismatches in meeting pay-in requirements, client and other obligations
Delivery versus payment
DVP funding against contracts for trades executed on the exchange on behalf of institutional clients
Intra Day Funding
Intra day funding to meet pay-in obligations (against cheques deposited in clearing or pay-out to be received from exchange) and client obligation.
As Clearing Bankers we act as the intermediary carrying out the flow of funds from the NSE/BSE accounts to the Broker's account and vice versa depending on the statement provided by the exchange. Bank carries all the various transactions as the Clearing Bank to the NSE/BSE and gives the required effects to the various accounts on receiving a statement of instructions from the NSE/BSE. Members have to open 4 accounts with the clearing bank at the designated branch.
This account is accessed by commodity exchanges for debits and credits for the trades undertaken by the Trading Member. No cheque book is to be issued and no cash transactions are allowed.
Exchange Dues Account
This account is accessed by stock exchanges for debiting transaction and other miscellaneous charges to member brokers. No debits other than the ones originated by the exchange are allowed. No cheque book is to be issued and no cash Transactions are allowed. All credits to this account have to be through the member's own account and not through the client's account.
This account has all normal operations as applicable to a current account. All debits/credits should be from or in favour of member's clients.
Own business Account
This account is towards member's own business and overdrafts are allowed in this account.