IPC's

Question 1

What are IPC’s ?

Answer 1

Irrevocable Payment Commitments

Question 2

Who issues this ?

Answer 2

Custodian banks

Question 3

Why are IPC’s issued ?

Answer 3

To guarantee payment for securities in Capital market transactions

Question 4

What is the max intraday risk considered for custodian banks issuing IPC’s ?

Answer 4

CME at 30% of settlement amount

Question 5

Who are all included in the amended definition of “Authorised persons” ?

Answer 5

Authorised Dealer category 1 banks

Standalone primary dealers category 3

Recognised stock exchanges

Recognised clearing corporations

Question 6

What led to the review of guidelines on issuance of IPCs by banks ?

Answer 6

Introduction of T+1 rolling settlement

Question 7

Can IPC’s be withdrawn once issued ?

Answer 7

NOOOOO