Business Standard

NCDEX launches NCCL as clearing corporation

Image

Press Trust of India Mumbai
National Commodity Clearing (NCCL), a wholly-owned subsidiary of National Commodity and Derivatives Exchange (NCDEX), Thursday commenced operations as a clearing corporation.
This is as per SEBI mandate that all the commodity derivative exchanges will transfer the functions of clearing and settlement of trade to a separate clearing corporation by September 28, 2018, a release said here.
NCCL will provide secure counter party risk management and will guarantee settlement of trades executed on NCDEX trading platform.
Meanwhile, NCCL has appointed Rajiv Relhan as its managing director and CEO with effect from September 27.
Prior to this, Relhan was working as head corporate institutional and commercial operations withStandard Chartered Bank.
Relhan said, "We are excited to launch the largest agri commodity clearing corporation. NCCL's services will ensure a strong risk management system and best governance practices and thus provide a sound market framework to the entire value chain. While we will be providing our services to NCDEX, we will also be exploring expansion opportunities in the market while adhering to SEBI guidelines," Relhan said.
NCCL has the financial capability in terms of net worth of more than Rs 100 crore, which will go a long way to retain and enhance market trust, he said.
"The combination of NCCL with NCDEX and National E Repository (NERL) will transform the country's agricultural markets and facilitate growth of the sector while boosting the confidence of the market participants and stakeholders in the commodity ecosystem," NCDEX managing director and CEO Vijay Kumar added.

Disclaimer: No Business Standard Journalist was involved in creation of this content

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Sep 27 2018 | 5:40 PM IST

Explore News