The main features of the proposed Clearing Corporation for clearing of
money, government securities and forex markets transactions are:
The Clearing Corporation will be constituted as a
limited liability Company under the Indian Companies Act 1956 and will
be known as "The Clearing Corporation of India Ltd."
The Company will have an authorised capital of Rs.50
The Clearing Corporation will be owned by the market
participants and promoted by State Bank of India. The other core
promoters of the company will be Bank of Baroda, HDFC Bank, ICICI, IDBI
The proposed Clearing Corporation will be managed by
a Board of Directors headed by a non-executive Chairman.
The Clearing Corporation will address the need for
efficient securities settlement system covering money, government
securities and forex markets.
The Clearing Corporation will:
- Facilitate extension of repos market to
non-Government securities and enlargement of market participants.
- Act as a tri-party agent for efficient management
of collateral in consonance with internationally accepted best
- Act as a central counter-party through novation
thereby minimising counter-party risk.
The Corporation will also manage a Settlement
Guarantee Fund thereby minimising settlement risk.