TABLE OF CONTENTS

• What is meant by Allocation of funds and Why is it important?
• Who are your Clearing members?
• Why is it taking time for updating my margin?
• Funds transferred after 7.30 pm is not getting added to Commodity Trading limits. Why?
• I am getting an email stating that 'your Clearing member has allocated xxx cash component as..' What is this?

What is meant by Allocation of funds and Why is it important?

Allocation is very important now as fund transfers done by you, if any, during the day, will be updated in margin only after allocating the funds to Clearing Corporation. Earlier, you could have traded immediately after transferring funds to us. Now, you can trade only, after the funds are allocated to the CM. 

Allocation simply means, allotting funds transferred by a client, to the Clearing Corporation against his/her UCC and in the segment in which he/she trades. For eg., Let us suppose Client A and Client B trading in F&O segment have transferred 50 lakhs and 20 Lakhs respectively. We, the Trading Member, will transfer it to the Clearing Member and add the 50 lakhs against the UCC of Client A in F&O segment and 20 lakhs against UCC of Client B in F&O segment.

Who are your Clearing members?

Clearing Members have an important role in current scenario as we need to allocate funds to Clearing Corporation through a Clearing Member. Here are the details of our Clearing Members

Why is it taking time for updating my margin?

Ideally it should not. If you hold an equity cash account with us and transfer funds during the market hours, we will immediately allocate it to the Clearing Corporation and then add it to your Margin in the trading terminal. It should not take more than 3 minutes to  be updated. If you hold only derivative account with us and then transfer funds, we will then allocate it through our PCM ICICI Bank and subsequently update margin in the trading terminal. This will take a longer time, sometimes up to 1 hr from the time of transferring funds to be updated. This is because, our PCM, ICICI Bank has not provided us a API to update transfers on the fly (online) and hence, we have to update them manually and then update the funds in your trading platform. Hence, we strongly suggest you to either transfer funds well in advance or open a free online demat account to get your funds updated anytime you transfer it to us.

Funds transferred after 7.30 pm is not getting added to Commodity Trading limits. Why?

As seen earlier, funds transferred during trading hours can be added to Trading limit or Margins only after allocating the transfer to the Clearing Corporation. We do the allocation to Clearing Corporation using the API facilities provided by them. However, in case of Commodity segment, MCX has not yet provided us an API to update allocation of funds online. We therefore, had suggested clients have only Commodity account to open a NSDL account so that, their fund transfers could be updated seamlessly by allocating it to Cash Clearing Corporation (NCL) instead of allocating to MCX. This allocation also, can be done only till 7.30pm. Any fund added after 7.30pm cannot be allocated online and hence, funds transferred after 7.30pm will not be updated in margin for trading. Hence, all fund transfers are to be done before 7.30pm to be added to trading limit.

I am getting an email stating that 'your Clearing member has allocated xxx cash component as..' What is this?

These messages are sent by Clearing Corporation to clients directly to keep them informed about the allocation that we do. This to ensure transparency of details reported by us to the clearing members. All that you got to do is to check if the funds mentioned in that email is your actual balance in the segment.