Clearing Corporation of India (CCIL) has been given a licence to act as an interposer between counterparties to contracts traded in financial markets.
"The Reserve Bank has today granted the status of a Qualified Central Counterparty (QCCP) to Clearing Corporation of India Ltd. (CCIL)," RBI said in a notification.
QCCP is a licenced clearing house, technically known as central counterparty (CCP), whereby it acts as an interposer between counterparties to contracts traded in one or more financial markets.
By doing so, it becomes a buyer to every seller and seller to every buyer to ensure future performance of open contracts.
It said CCIL has been qualified as a QCCP in view of the fact that it is authorised and supervised by the RBI under the Payment and Settlement Systems Act.
RBI further said CCIL is subjected to rules and regulations consistent with principles for Financial Market Infrastructures (PFMIs) issued by the Committee on Payment and Settlement Systems (CPSS) and International Organisation of Securities Commissions (IOSCO).
CCIL was authorised in 2009 to operate payment systems for securities covering government bonds, collateralised borrowing and lending obligations, forex settlement segment.
It also acts as payment system for rupee derivatives including rupee denominated trades in interest rate swaps and forward rate agreements.
In July 2013, CCIL was designated as a critical Financial Market Infrastructure (FMI) for oversight because of its systemic importance in financial markets.
