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Sebi renews licence of BSE's clearing corp for one year

BSE subsidiary is regulated by the Sebi and RBI, to select the products


Press Trust of India  |  Mumbai 

Sebi renews licence of BSE's clearing corp for one year

Indian Clearing Corporation Ltd (ICCL), an arm of BSE, has been granted renewal of recognition by the regulator for a period of one year.

The one-year licence to ICCL is valid from October 3, this year.

ICCL carries out the functions of clearing, settlement, collateral management and risk management for various segments of BSE.

The clearing corporation is recognised under Sebi's regulations for stock exchanges.

The BSE subsidiary is regulated by the Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI), for select products.

"ICCL is the only clearing corporation in India to have been granted 'AAA' rating by two rating agencies, India Ratings (Indian arm of Fitch Ratings) and Care Ratings," BSE said in a statement.

"It aims to provide secure, capital-efficient counterparty risk management and post-trade services and has put in place a robust risk management framework to mitigate the risk it undertakes in its capacity as a clearing corporation," it added.

ICCL had been granted 'Qualified Central Counterparty' (QCCP) status by on January 3, 2014.

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

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First Published: Wed, October 05 2016. 19:02 IST