NSCCL stand for National Securities Clearing Corporation of India Limited.Now it is known as NSE clearing limited. It is a wholly owned subsidiary of NSE which is responsible for clearing and settlement of all trades executed on NSE and deposit and collateral management and risk management function.It was the first clearing corporation to be established in India and introduced as settlement guarantee before it became a regulatory requirement.
OBJECTIVE OF NSCCL
There are some objectives of the NSCCL which are as follows-
1. To bring and sustain confidence in clearing and settlement of securities.
2. Promoting and maintaining short and consistent settlement cycles.
3. Provides counter party risk guarantee.
4. To operate a tight risk containment system.
As per CRISIL,the rating reflects NSCCL's status as Clearing Corporation for NSE. The rating also factors in NSCCL's rigorous risk management controls and adequate settlement guarantee cover. CRISIL has further stated that NSCCL's risk management system is comprehensive and is regularly upgraded to pre-emptive market failure.
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