RBI says entities seeking authorisation as Central Counterparty should have a minimum networth of Rs 300 crore

The Reserve Bank of India (RBI) stated yesterday that an entity seeking authorisation or recognition as a Central Counterparty (CCP) should have a minimum networth of Rs 300 crore at the time of submitting its application. CCP means a system provider by way of novation interposes between system participants in the transactions admitted for settlement. CCP becomes the buyer to every seller and the seller to every buyer for the purpose of effecting settlement of their transactions. The central bank noted this as it updated its June 2019 norms for Central Counterparties.

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