Client Model facilitates participation by the eligible entities in the tri party repo transaction by the following entities: a. Entities which are not eligible to take direct membership of the exchange / clearing corporation viz. corporates, NBFCs etc. to participate in triparty repo in corporate debt securities as a client of a trading member / clearing member. b. Entities which are eligible to take membership of the exchange / clearing corporation which do not want to take membership on stock exchanges/clearing corporation.

An eligible entity means entities which are eligible to participate in repo transactions under Master Direction – Reserve Bank of India (Repurchase Transactions (Repo)) Directions, 2025 as amended from time to time.

There are two categories of clients namely “Participant” i.e. Direct Clients and “Constituents” i.e. indirect clients.
Currently, Tri-party repo will be allowed only for Participants. Tri-party repo for “Constituents” will be made available subsequently.

Eligible entities as specified by RBI, who satisfy the eligibility criteria specified by ARCL from time to time will be eligible to register as Participant. The eligibility criteria for Participant is available at:
https://www.arclindia.com/spages/Downloads/MembershipCriteria.pdf

This category of clients will take registration through the trading member/ clearing member for participating in repo transactions. The documents required to be submitted for registration as “Participant” with AMC repo are provided in the following link:
https://www.arclindia.com/clientsdocumentation/participants

The Participant shall be responsible for collateral/margin and settlement. Participant will manage collateral and/or margin (i.e., deposit and withdrawal) directly with the clearing corporation from its demat account and bank account respectively without routing through the clearing member; and carry out settlement of funds directly with the clearing corporation in its own settlement bank account without routing through its clearing member’s account.

The Participant is required to transfer collateral from its demat account (currently with NSDL only) to the ARCL NSDL pool account. The transfer must be executed as an on-market transaction, using the settlement number specified by ARCL in its monthly settlement calendar.

No, transfers from multiple demat accounts are not permitted. Participant can transfer securities only from one demat (NSDL) account to the ARCL pool account. The demat account details need to be provided as part of registration. The NSDL demat account must be in the name of the entity (not in an individual’s or third party’s name).

Participants shall provide a cash margin at the rate of 0.50% (for repo tenor up to 7 days) of lending value by transferring the amount to the settlement bank account maintained with the clearing banks and simultaneously provide instruction for addition of cash margin through interface provided by ARCL.
For other operational details please refer FAQs on the direct membership (link). http://www.arclindia.com/faq

The fund settlement will be done in the settlement account of participant opened with the Clearing Bank. The responsibility of settlement lies with the individual Participant.