India ICC allows AAA-rated sovereign securities to be placed as collateral

India International Clearing Corporation Ltd. (India ICC), the clearing arm of India International Exchange (India INX) has announced the acceptance of AAA-rated international sovereign securities as collateral from its clearing members and custodians.

India ICC is the only clearing corporation in GIFT IFSC to offer this. The acceptance of international sovereign securities by India ICC is expected to benefit foreign investors looking to trade on India INX and thus make GIFT IFSC a more attractive destination for international investors.

US Treasury Securities with a maturity of more than five years and the portfolio of acceptable AAA-rated sovereign securities by India ICC will be subsequently expanded based on country risk assessment with increasing participation from foreign investors, said India INX in a press release. 

It further added that the minimum lot size of the sovereign securities placed as collateral should be US$1 million subject to applicable haircut.