Description

ICCL revises Early Pay-in (EPI) cut-off timings for funds and securities on 02-January-2026, advancing deadlines to 7:00 PM from 7:45 PM and 9:00 PM respectively.

Summary

Indian Clearing Corporation Ltd (ICCL) has issued revised timelines for Early Pay-in (EPI) activities specifically for 02-January-2026. The changes significantly advance the final cut-off times for both EPI of Funds and EPI of Securities to 7:00 PM, while extending the Collateral Allocation cut-off to 10:00 PM. These temporary modifications are made in reference to SEBI circular SEBI/HO/MIRSD/DOP/P/CIR/2022/10 dated July 27, 2022, regarding settlement of running account of client’s funds.

Key Points

  • EPI of Funds final cut-off time advanced from 7:45 PM to 7:00 PM (45 minutes earlier)
  • EPI of Securities final cut-off time advanced from 9:00 PM to 7:00 PM (2 hours earlier)
  • Collateral Allocation cut-off time extended from 8:00 PM to 10:00 PM (2 hours later)
  • Margin reports download time advanced from 10:30 PM to 8:45 PM (1 hour 45 minutes earlier)
  • Changes apply only to 02-January-2026
  • Reference to original circular ICCL no. 20200829-4 dated August 29, 2020

Regulatory Changes

This circular implements temporary timeline modifications in accordance with:

  • SEBI circular SEBI/HO/MIRSD/DOP/P/CIR/2022/10 dated July 27, 2022
  • ICCL circular no. 20200829-4 dated August 29, 2020

The changes represent operational adjustments to settlement timelines rather than permanent regulatory framework modifications.

Compliance Requirements

Trading Members must:

  • Complete EPI of Funds by 7:00 PM on 02-January-2026 (instead of usual 7:45 PM)
  • Complete EPI of Securities by 7:00 PM on 02-January-2026 (instead of usual 9:00 PM)
  • Complete Collateral Allocation by 10:00 PM (extended from usual 8:00 PM)
  • Adjust internal processes to accommodate earlier deadlines

Custodians must:

  • Ensure timely confirmation of securities and funds by revised deadlines
  • Coordinate with trading members to meet the 7:00 PM cut-off

Contact points for clarifications:

Important Dates

  • Circular Issue Date: December 30, 2025
  • Effective Date: January 02, 2026 (one-day implementation)
  • EPI Funds & Securities Cut-off: 7:00 PM on 02-January-2026
  • Collateral Allocation Cut-off: 10:00 PM on 02-January-2026
  • Margin Reports Download: 8:45 PM on 02-January-2026

Impact Assessment

Operational Impact:

  • Trading members and custodians must expedite their settlement processes by 45 minutes to 2 hours
  • Limited preparation time as circular issued on December 30 for January 02 implementation
  • Requires immediate coordination between trading members, custodians, and back-office teams

Market Impact:

  • Affects all market participants involved in settlement activities
  • May require temporary adjustments to operational workflows and resource allocation
  • Extended collateral allocation window provides additional flexibility for margin management

Risk Considerations:

  • Tight timeline for implementation may increase operational risks
  • Members need to ensure adequate staffing and system readiness for earlier deadlines
  • Failure to meet revised cut-offs could impact settlement obligations

The earlier margin report availability (8:45 PM vs 10:30 PM) provides members with earlier visibility of their margin requirements, potentially offsetting some operational challenges of the earlier EPI deadlines.

Impact Justification

Time-sensitive operational change affecting all trading members and custodians with significantly earlier cut-off times requiring immediate operational adjustments for next trading day