Merchant Banking and Financial Services, III Semester (MBA), UNIT-1
Definition of Clearing Corporation of India Limited (CCIL)
CCIL was established in April, 2001 as a Joint Stock Company with share capital contribution by major banks and financial institutions. CCIL is a platform for the payment and settlement system in the Indian financial market. It provides an electronic, efficient, transparent, risk mitigated clearing and settlement process to its members in gilts and foreign currency markets.
Important Milestones
Date of Commencement of Securities Settlement from February 2002
Commencement of Guaranteed Settlement April, 2002
Settlement of Forex transactions started since November 2002
Launching of the Collateralised Borrowing and Lending Obligation
(CBLO) in January 2003
Development of a FOREX trading platform “FX-CLEAR” since August
2003.
Starting the settlement of cross-currency deals through the CLS
Bank from April 6, 2005.
RBI introduced the system of Negotiated Dealing System-Order
Matching (NDS-OM) in August 2005. NDS-OM is an electronic, screen based,
anonymous, order driven trading system for dealing in Government securities.
CCIL maintains the system of NDS-OM. The Reserve Bank regulates the CCIL under
the Payment and Settlement Systems Act, 2007.
The NDS-Auction module was developed by CCIL for Treasury Bills
auction by RBI.
