SHCIL in it’s endeavour to serve various entities in the derivatives segment has developed indigenous solution keeping in view the strict regulatory requirements.
Privacy of each TM’s operations strictly maintained
SHCIL being a professional clearing member has no trading interests in the derivatives segment. There is strictly no dissemination of information on trading or any other operation of any of its clients.
One-point contact for all the activities :
SHCIL’s Derivatives segment is centralized and all operations are handled by an exclusive derivatives team.
Dedicated team of professionals to handle Derivatives operations:
SHCIL has a well-trained team of professionals supported by best systems, to handle derivatives operations at NSE and BSE. Clients can approach the team for troubleshooting, conceptual understanding or any other operational issue related to derivatives trading.
Tie-up with banks having nation-wide reach for banking activities :
Since settlement in derivatives trading takes place daily. Funds movement has to be fast. SHCIL has tie up with banks (HDFC Bank, ICICI Bank, OBC, IDBI Bank,UTI Bank, Canara Bank etc.) having wide reach and modern facilities like TT/anywhere banking etc. to contain the time lag in banking transactions.
Network of more than 130 branches to support outstation clients :
SHCIL has nation wide reach with its 130 plus branches across the country to support outstation clients. SHCIL’s branches are geared up to provide derivatives clearing and settlement services to trading members operating from respective branches.
In built checks and controls :
SHCIL has indigenously designed systems that take care of the stringent regulatory requirements for derivatives trading in India.
SHCIL has excellent system to manage cash/cash equivalents/securities deposited as collateral for derivatives trading. Clients are informed as and when expiry of any instrument approaches. Securities are transferred in minimum possible time. Corporate actions on securities are monitored and clients are being informed accordingly.
Support from Institutional participants:
SHCIL being a custodian clearing member having major institutional clients like UTI, IDBI etc. who are also promoters of SHCIL, provides more credibility to its clients.
Competitive service charges:
SHCIL is the pioneer in introducing Derivatives Clearing and Settlement services in the country. To promote derivatives trading, the service charges are designed not become a hindrance for anybody entering this market.
There is no need to block assets worth Rs. 50 lakh as initial margin deposits with exchange. Instead a Trading member can take huge exposures by investing the same amount through a PCM like SHCIL.
Derivatives trading require complying with stringent regulatory requirements and huge investment in back office systems for a Clearing Member. By choosing a PCM like SHCIL, a trading member can start trading with very little investment in back office systems since a PCM takes care of the back office activities.
Advantage of trading for institutional clients. A trading member can execute institutional orders without shrinking his own exposure limits as institutional trades are confirmed online by the respective PCM.
Confidentiality of Trades:
Since SHCIL has no trading rights, the business details of a trading member are not likely to be misused .There is no overlapping of business interests.
Due to highly competitive nature of the market, SHCIL’s service charges are normally very low and it makes more business sense for a TM to outsource the clearing and settlement activities and focus on the core business of trading.