InvestorQ : How is the pay-in of funds and securities actually done?
Rashi Mehra made post

How is the pay-in of funds and securities actually done?

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Dawn Cherian answered.
4 years ago
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Pay-in of Funds and Securities requires members to bring in their funds/securities to the clearing corporation. The CMs make the securities available in designated accounts with the two depositories (CM pool account in the case of NSDL and designated settlement accounts in the case of CDSL). The depositories move the securities available in the pool accounts to the pool account of the clearing corporation. Likewise, CMs with funds obligations make funds available in the designated accounts with clearing banks. The clearing corporation sends electronic instructions to the clearing banks to debit designated CMs’ accounts to the extent of payment obligations.
The banks process these instructions, debit accounts of CMs and credit accounts of the clearing corporation. This constitutes pay-in of funds and of securities.
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