Comments
SEBI has granted recognition to the clearing corporations of BSE (ICCL), MCX-SX (MCX-SX CCL) and NSE (NSCCL) for one year commencing October 3, 2014, subject to conditions.
A clearing corporation is a central counterparty. It clears and settles trades done on exchanges by interposing itself between buyers and sellers- becoming the buyer to every seller and the seller to every buyer.
All the three clearing corporations have been directed to take immediate steps to rectify the deficiencies pointed out in the systems audit done by SEBI.
In addition, ICCL has been asked to have a business continuity plan and disaster recovery site.
MCX-SX CCL has been directed to comply with shareholding requirements; implement the SEBI order on entities declared not 'fit and proper' person; submit an action plan to increase its net worth to Rs 100 crore within nine months and appoint a Managing Director and Compliance Officer.
NSCCL has been directed to appoint a compliance officer exclusively for the Clearing Corporation.
Clearing Corporations also manage collateral and risk for various segments of exchanges (equity, equity derivatives, currency fixed income and mutual funds) for which they provide clearing and settlement services.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.