Sebi grants 'qualifying central counter party' status to MCX Clearing Corporation

Markets regulator Sebi Tuesday said it has granted the 'qualifying central counter party' (QCCP) status to Multi Commodity Exchange Clearing Corporation Ltd.

A QCCP member is subjected to lower capital requirements and charges under the Basel III framework introduced by the Basel Committee on Banking Supervision.

QCCP "is also subjected on an on-going basis, to rules and regulations that are consistent with the Principles for Financial Market Infrastructures issued by the Committee on Payment and Settlement Systems and International Organization of Securities Commissions," Sebi said in a release.

Clearing corporations are regulated under the SCRA (Securities Contract (Regulation) Act) Regulations, the release added.

Clearing corporations undertake the activity of clearing and settlement of trades in securities or other instruments or products that are dealt with or traded on recognised stock exchanges.