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Informist, Wednesday, Apr. 29, 2026

MUMBAI – The Clearing Corp. of India Ltd. Wednesday revised the methodology for determining collateral concentration limits in the triparty repo segment, tightening norms around the use of illiquid securities.

In a notification issued on Wednesday, CCIL said members will continue to be allowed to avail up to 100% of their borrowing limit against the government securities classified as liquid and semi-liquid. This includes instruments such as STRIPS--Separate Trading of Registered Interest and Principal of Securities--and floating rate bonds, provided they meet the corporation's liquidity criteria.

The revised framework, however, places stricter caps on the use of less liquid instruments. CCIL said that while members can continue to deposit illiquid securities and state development loans as collateral, the borrowing limit against such securities will be restricted. Under the new rules, the combined borrowing limit that can be availed against illiquid securities and state bonds will be capped at 50% of the market value—after applicable haircuts of the liquid and semi-liquid securities already deposited by the member.

Within this overall cap, CCIL has introduced an additional sub-limit for state loans. Borrowing against state laons alone will be restricted to 30% of the market value of the liquid and semi-liquid securities, again adjusted for haircuts.

The corporation clarified that when calculating borrowing limits under the combined cap, priority will be given to illiquid securities. Only after the limit for such securities is exhausted will any remaining borrowing capacity be allocated to state loans.

For instance, if a member holds INR-100-billion liquid and semi-liquid securities combined, the maximum borrowing allowed against illiquid securities and state loans together would be INR 50 billion. Within this, borrowing against state loans alone cannot exceed INR 30 billion.

The revised norms replace the earlier methodology outlined in CCIL's April 2021 notification, which had pegged the borrowing by state loans at 20%. The changes will come into effect from the end of the day on Jun. 1, CCIL said.  End

Reported by Kabir Sharma

Edited by Akul Nishant Akhoury

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