Every Clearing Member is required to maintain and operate a primary clearing account with any one of the empanelled clearing banks at the designated clearing bank branches. The primary clearing account is to be used for clearing and settlement operations i.e., for settling funds obligation, payment of margins, release and enhancement of collateral, EPI of funds, penal charges. A Clearing member having funds obligation to pay is required to ensure availability of sufficient clear balance in the clearing accounts on or before the stipulated funds pay-in day and the stipulated time.

Further, every clearing member can maintain and operate additional clearing accounts with the designated clearing banks for the purpose of enhancement of collaterals in the form of cash and for providing EPI of funds. Release of cash collateral, collateral enhancement and EPI of funds, shall be routed through the secondary clearing account of the member if specified by the member.

Maintenance of a primary clearing account and one additional clearing account would not be chargeable. However, starting from second additional clearing account onwards, a charge of Rs.5000 plus service tax would be levied for every additional clearing account activated for the clearing member. Clearing members are required to send a Demand Draft, favoring National Securities Clearing Corporation Ltd for the total amount of applicable charges plus service tax, along with the request for activation of additional clearing account.

Clearing Members are required to authorise the Clearing Bank to access their clearing accounts for debiting and crediting their accounts, reporting of balances and other information as may be required by NSE Clearing from time to time as per the specified format. The Clearing Bank will debit/ credit the clearing account of clearing members as per instructions received from the Clearing Corporation.

A Clearing member can deposit funds into this accounts in any form, but can withdraw funds from these accounts only in self-name.

Clearing members shall not seek to close or de-activate the clearing account without the prior written consent of the Clearing Corporation

In case a clearing member wishes to shift the primary clearing account from one designated clearing bank to another designated clearing bank, the following procedure is required to be followed:

• The clearing member while requesting the Clearing Corporation for a change in the primary clearing bank account would either
  1. Furnish the no objection certificate (NOC) received by the member from the existing primary clearing bank for shifting of account, or
  2. In case no response was received by the clearing member from the existing primary clearing bank in respect of the NOC request even after a minimum waiting period of a fortnight, a declaration to the above effect along with an acknowledged copy of the NOC request made by the member to the existing primary clearing bank.
• The Clearing Corporation would thereon issue a letter of introduction to the other designated clearing bank
• On opening the account with the other designated clearing bank, the clearing member shall submit to the Clearing Corporation the account particulars issued by the bank and also the acknowledged copy of the letter issued by the clearing member to the clearing bank (as per specified format)

The Clearing Corporation shall thereon communicate the date from which the new primary clearing account will be operational. The clearing members are required to intimate the Clearing Corporation whether they wish to continue the existing primary clearing account as one of the additional clearing accounts or discontinue the existing primary clearing account after the change in primary clearing bank. In the event where the clearing members wish to discontinue the existing primary clearing account, the Clearing Corporation shall communicate the date after which the existing primary clearing account may be closed by the clearing member.