Leading bourse National Stock Exchange's clearing corporation arm has introduced a facility for banks to submit Fixed Deposit Receipt (FDR) issued as collateral in electronic form.
"NSCCL (National Securities Clearing Corporation Ltd) introduces a facility for empanelled banks to submit FDR issued as collateral to clearing members in electronic form," NSE said in a circular.
"The circular shall be effective from December 8, 2014," it added.
The move will help in eliminating the loss of physical papers and reducing fraudulent activities.
HSBC is the empanelled bank which will provide this facility to members.
To avail this facility, trading members are required to requests the bank to create FDR and mark lien in favour of NSCCL.
For the creation of FDR, trading members need to submit documents, including primary member code of the segment and Security Deposit or Margin Deposit and segment for which the FDR is required, to the bank.
Consequently, the bank will send the information in electronic form to NSCCL and the clearing corporation firm will validate and pass on the benefit of the same to the member.
Further, the clearing corporation will send a system generated e-mail and SMS to the member.
