RBI grants special to CCIL as counterparty

MUMBAI: The Reserve Bank on Wednesday granted the status of a Qualified Central Counterparty (QCCP) to Clearing Corporation of India Ltd in the Indian jurisdiction. The mandate came in view of the fact that CCIL is authorised and supervised by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007.

A qualifying central counterparty (QCCP) is a licensed entity. It operates as a central counterparty, which is a clearing house.

It may be recalled that CCIL was authorised in 2009 to operate payment systems for (i) securities segment covering government securities; (ii) collateralised borrowing and lending obligations (CBLO); (iii) forex settlement segments (iv) rupee derivatives segment – rupee denominated trades in Interest Rate Swaps (IRS) and forward rate agreements (FRA) under section 7 of the Payment and Settlement Systems Act, 2007.

In July 2013, CCIL was designated as a critical Financial Market Infrastructure (FMI) for oversight considering its systemic importance in financial markets regulated by the Reserve Bank.