29-Sep-2023
2 mins read
The Securities and Exchange Board of India (SEBI) officially announced the renewal of licences for NSE Clearing Ltd and Indian Clearing Corporation Ltd (ICCL). According to Thursday’s gazette notifications, these licences are extended until October 2, 2026.
Reasoning Behind the Decision
SEBI expressed its satisfaction with the renewal, emphasizing that such a step aligns with the interest of trade, the securities market, and the broader public welfare. As a further testament to their continued importance, SEBI’s endorsement acknowledges their roles as clearing corporations for the upcoming three-year period, starting October 3, 2023.
Compliance and Regulations
It’s not all plain sailing, though. Both NSE Clearing Ltd and ICCL must remain compliant with conditions set by SEBI, ensuring that their operations remain in line with the market regulator’s guidelines.
A Glimpse into Their Histories
For those unfamiliar, NSE Clearing Ltd, originally known as National Securities Clearing Corporation Limited, is a key player in the market, being a subsidiary of the National Stock Exchange (NSE). Founded in August 1995, it holds the distinction of not only being the first clearing corporation in India but also the pioneer in introducing the settlement guarantee. On the other hand, ICCL, established in 2007, is a BSE subsidiary. Its responsibilities span clearing, settlement, collateral management, and risk management for various BSE segments, underpinning its vital role in the market’s ecosystem.
As these two entities gear up for another tenure, their contributions to India’s financial markets will undoubtedly remain crucial, reflecting SEBI’s confidence in their operations.