ICCLINDIA

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ICCL - SLB Process Flow

Process Flow

First Leg

In case the borrower fails to honor his securities pay-in obligation, ICCL shall conduct a buy-in auction to arrange for lender's shares
In case the lender fails to honor his settlement obligation, the transactions shall be closed-out at higher of the following rates
- 25% of closing price of the security (as per closing price in the Equity Cash Segment of BSE) on T+1 day
  or
- Highest rate of the security from the trading day to T+1 day minus T+1 day closing price of the security
Financial close-out shall only be conducted as a last resort

Return Leg

Lender pays 25% of lending price (Price of the Stock * Quantity) as margin on T day which is released after pay-in on T + 1 day
Borrower pays twice the lending fees as margin on T day, which is released on T + 1 day after Pay-in. However, he is required to pay the lending price + VaR + ELM + M2M from the BOD of T + 1 day till the expiry of the contract
In the event of fund shortages by the borrower, the SLB transactions shall be cancelled as may be decided by ICCL and accordingly, the securities shall be returned to the lenders along with lending fees
In the event, lender fails to deliver securities in the settlement the transactions shall be closed-out

Early Recall /Early Return Leg

A lender enters into an early recall trade if he requires the shares before the expiry of the contract
Borrower may accept the early recall trade however the borrower needs to complete early pay-in of securities before accepting the early recall trade of the lender
Borrower can also initiate an early return trade. However, the early-pay-in of securities is compulsory

SLB Roll Over

The lender/borrower may extend the period of an existing contract through the roll over mechanism
An existing contract can be rolled over for a maximum of further two months
There will be no settlement of securities. However, there may be funds settlement for lending fees from the borrower to the lender for the extended period
New obligations will be generated for the lender/borrower with the new contract expiry date
The settlement will take place at the end of the contract period as per the return leg cycle

Indian Clearing Corporation Limited Customer Care

022-69158590/ 45720490/ 45720690

iccl.helpdesk@icclindia.com