Products & Services

Margin Financing System (MFS)

Following are the key features of MFS:

  • Margin Financing (MF) facility is made available to all Members against net ready market purchases of their clients and proprietary positions.
  • MF can be obtained as per agreed Financier Participation Ratio (FPR). However, minimum of 25% or VaR whichever is higher should be contributed by Financee.
  • Financing terms and conditions are pre-determined by Margin Financee and Margin Financier.
  • NCCPL provides a system to MF Participants for recording and settlement of MF Transactions.
  • Margin Financing facility is made available only in Eligible Securities.
  • All MF Transactions are based on counterparty risk in a disclosed manner.
  • NCCPL manages risk management of Financier until settlement of MF transaction.
  • Financier will manage RMS of Financee directly.
  • Securities are delivered in the MF Blocked CDS A/C of Financier.

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