What changed
Participants must now fax their clear intent to transfer securities to the RC SGL account by 11:30 AM for LAF and 4:30 PM for SLAF, replacing the earlier flexible deadline of 2:30/5:30 PM. Incomplete faxes (wrong format, missing SGL number, or full name) will no longer be processed. Multiple faxes for the same bid are discouraged.
What it means for you
Banks and primary dealers must tighten their internal processes for LAF/SLAF repo bids to avoid rejection due to late or incomplete SGL transfer intents. The stricter timeline reduces settlement delays but increases operational pressure on treasury teams to meet the earlier cut-offs. Partial acceptance or rejection of bids still allows reverse transfers.
What you must do
- Update your LAF/SLAF bidding SOPs to ensure faxed SGL transfer intents are sent by 11:30 AM (LAF) and 4:30 PM (SLAF) without fail.
- Verify that all faxed bids include correct SGL number, full participant name, and proper format before sending.
- Avoid sending multiple faxes for the same bid; consolidate into one clear communication.
- Train treasury staff on the new deadlines and rejection risks to prevent settlement disruptions.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Primary Dealers
What happens if we miss the 11:30 AM fax deadline for LAF repos?
Your repo bid will be liable for rejection due to insufficient balance in the RC SGL account, as the intent to transfer securities was not communicated on time.
Can we still reverse transfer securities if our bid is partially accepted?
Yes, in case of partial acceptance or rejection of the bid, participants can initiate a reverse transfer of securities from the RC SGL account.