1

Risk is on the Broker

1

Risk is on the NCCPL

2

Authorized Financier status of each Stock Exchange was needed to Extend financing.

2

Authorized Financier status would not be needed to extend finances

3

Less capacity to extend money to brokers at any Stock Exchange in a neutral manner        

3

Greater capacity to lend money to brokers at any Stock Exchange in a neutral manner.

4

Pool of funds administered by brokers

4

Pool of funds administered by NCCPL

5

Brokers’ personal commitment is present

5

Brokers' personal commitment is missing because the risks will be essentially on CFS eligible shares held by Authorized Financiers in its own name

6

Authorized Financiers take flat margins from financee irrespective of the level of risk             

6

There are no flat margins/ collaterals. Collaterals are based on VAR methodology. i.e. higher margins where the risks are higher

7

7

Special Margins are collected on a daily basis by the NCCPL without any hassle to financial institutions