Consider the following statements about the Clearing Corporation of India Limited CCIL 1 The CCIL is...........

Miscellaneous Others

Consider the following statements about the Clearing Corporation of India Limited (CCIL):

1. The CCIL is the clearing agency for GSecs.

2. It acts as a Central Counter Party (CCP) for all transactions in G-Secs by interposing itself between two counterparties.

3. CCIL guarantees settlement of all trades in G-Secs.

Which of the statements given above is/are correct?

1 only

2 only

1 and 2 only

1, 2 and 3

Explanation:

Explanation: The CCIL is the clearing agency for G-Secs. It acts as a Central Counter Party (CCP) for all transactions in G-Secs by interposing itself between two counterparties. In effect, during settlement, the CCP becomes the seller to the buyer and buyer to the seller of the actual transaction. CCIL also guarantees settlement of all trades in G-Secs. That means, during the settlement process, if any participant fails to provide funds/securities, CCIL will make the same available from its own means. For this purpose, CCIL collects margins from all participants and maintains ‘Settlement Guarantee Fund’.