To
All Members/Participants,
On 23rd June 2023, SEBI had issued circular on “Trading Supported By Blocked Amount In Secondary Market” (Circular reference no. SEBI/HO/MRD/MRD-PoD-2/P/CIR/2023/99).
- From implementation perspective of the said circular, all MIIs have deliberated on standard operating procedures to be followed, and same was disseminated to members under notice no 20231012-57.
- Member API Specification for UPI Mechanism was disseminated to member under notice no 20231116-51.
- NPCI Reference Document for members to connect to UPI Block Mechanism functionality was issued under notice no. 20231116-52.
- For Member API testing purpose ‘Test Environment’ details were issued to members under notice no 20231130-61.
In the extant operating guidelines for trading supported by blocked amount in the secondary market, the members have the option of collecting charges other than trade obligations, stamp duty and STT using the mechanism provided by ICCL.
Option 1: Member can collect the charges directly from the client.
Option 2: Member can collect the charges using an optional mechanism provided by ICCL.
Procedure to be followed for ‘Option 2’ specified above is as below:
Trading Member Charges (Disclosure, Computation, Collection & Dissemination)
- CM will notify TM wise charges as fixed percentage to ICCL by following procedure mentioned in Annexure A.
- As defined in SOP for UPI functionality, ICCL will publicly disclose TM wise charges as fixed percentage.
- ICCL will continue to compute the charges as a fixed percentage of gross turnover of UCC.
- ICCL will allow members to provide client-wise data of TM charges in terms of rupees on a daily basis by 11:00 am for the previous day.
- The actual TM charges will be compared to TM wise fixed percentage charges.
- If actual charges are lower than or equal to TM wise fixed percentage charges, ICCL will debit the actual TM charges and will pay it to CM.
- If actual charges are greater than TM wise fixed percentage charges, ICCL will debit the TM wise fixed percentage charges and will pay it to CM.
- In case the member does not provide the data for actual charges by the cutoff time, then ICCL shall debit the charges calculated based on the fixed percentage specified by TM.
- Process to be followed for collection of TM Charges is described in Annexure B.
Members are requested to take note of the contents of this Circular & all related circulars issued previously and comply with the same.
For and on behalf of the Indian Clearing Corporation Limited.
Akshat Chaturvedi Mrunal Amberkar
General Manager Senior Manager
Operations Operations
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