Services

CROMS -

The following minimum eligibility criteria shall apply for grant of Membership to the Repo Dealing Segment of Clearcorp.

The applicant shall –

a) Be a Bank/Financial Institution/Primary Dealer/Mutual Fund or a Statutory Corporation or a Body Corporate including a Company as defined in the Companies Act, 1956 or any entity as may be permitted from time to time by Reserve Bank of India to access its NDS or any part thereof;

b) Be a Member of RBI – NDS and / or INIFINET; Provided that in the event of membership to RBI’s NDS and/or INFINET not having been obtained, such entity has put in place and operationalised other secure and efficient IT and communication infrastructure to facilitate connectivity and proper, efficient, secure and smooth functioning of their Dealing Systems as may be prescribed by Clearcorp / Clearing Corporation from time to time; Provided further that in respect of entities who while being members of NDS and/or INFINET do not maintain their SGL and/or Current Account with RBI prior to seeking membership to Clearcorp Repo Dealing Segment, shall have appointed a Designated Settlement Bank of the Clearing Corporation through which it will ensure smooth and proper clearing and settlement of its funds and/or securities obligations arising out of the trades concluded by it on the Repo System.

c) Be an active Member of the Securities Segment of the Clearing Corporation;

d) Not have any record of repeated failure in complying with regulatory requirements;

e) Not have any record of failure in honouring its obligations promptly;

f) Not have been subject to an order of statutory disqualification or an order of similar effect issued by a regulatory authority;

g) Have adequate risk management systems in place and shall have qualified personnel in its employment for effective risk management;

h) Fulfilled Capital Adequacy norms/Minimum Net Worth requirements as laid down by their respective regulators; if no such norm is prescribed or if the applicant is exempted from fulfilling the same, then the applicant shall have minimum Net Worth as stipulated by Clearcorp ;

 i) Be a profitable organization (must have reported operating profits in at least two out of three financial years immediately preceding the date of application); 

j) Provided that Clearcorp at its discretion may exempt any entity as specified in 2.3 (a) above, from the requirement of paras 2.3 (h) and 2.3 (i) above; 

k) Have experienced and qualified personnel in its treasury and/or finance departments; 

l) Have requisite IT and communication infrastructure to facilitate connectivity and smooth functioning of the dealing systems. 

No entity shall be admitted as a Member of Clearcorp if- 

1. Proceedings for winding up have commenced or if it has been ordered to be wound up or a provisional liquidator/ receiver/official liquidator has been appointed for such an entity; 
2. Has compounded with its creditors for less than full discharge of debts save if such acts of compounding as are carried out in the normal course of its business as a part of a restructuring process;
3. Has been barred by an order of a Court/Government/Regulatory body for any violation of law;
4. Has been at any time declared a defaulter under any Law or by any regulatory body;
5. Has been previously refused admission to Clearcorp unless the period of one year has elapsed since the date of last rejection;
6. Notwithstanding anything contained herein, the Board shall have the power to amend, alter, vary or exempt the eligibility criteria for admission to Membership.