CLEARING CORPORATIONS

abhishreshthaa

Abhijeet S
National Securities Clearing Corporation Ltd

  • National Securities Clearing Corporation Ltd. (NSCCL), is a wholly-owned subsidiary of NSE.

  • It was set up in August 1995 and it was the first clearing corporation in the country to provide Novation/ settlement guarantee that revolutionised the entire concept of settlement system in India.

  • It commenced clearing operations in April 1996
Objective of NSCCL

  • To bring and sustain confidence in clearing and settlement of securities.

  • To promote and maintain short and consistent settlement cycles.

  • To provide counter-party risk guarantee.

  • To operate a tight risk containment system.

  • Working

  • It operates a well-defined settlement cycle and there are no deviations or deferments from this cycle.

  • It has been managing clearing and settlement functions since its inception without a single failure
 
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