Subject: Notice to replace securites with cash towards collateral
As you are all aware, NSCCL has asked Professional Clearing Members (PCMs) like SHCIL to submit the auditor's certificate indicating that the securities pledged in favour of NSCCL are owned by the PCMs. However, being a Professional Clearing Member, SHCIL does not own the securities which are received by SHCIL from its Trading Members on account of collateral. As such it is proposed to replace these securities with cash.
In order to meet with this requirement, we hereby request you to replace securities deposited by you with SHCIL with cash immediately. SHCIL is arranging to get the bank guarantees from various banks and the proposals with these banks are at various stages of completion. Once we get the sufficient bank guarantees from these bankers, we may start accepting the securities from you. However SHCIL will have to levy some charge on the securities placed by you with it.
In the meanwhile, latest by September 7th, 2006 we request you to withdraw the securities placed with us as a collateral and replace the securities with only cash to maintain your level of collateral intact to enable you to
On September 7th, 2006 EOD the benefit on account of securities will be withdrawn.
Thursday, August 31, 2006
>Notice to replace securites with cash towards collateral
Notice to replace securites with cash towards collateral - Addendum