What does a clearing house do?
What does a clearing house do?
A clearing house is an intermediary between buyers and sellers of financial instruments. It is an agency or separate corporation of a futures exchange responsible for settling trading accounts, clearing trades, collecting and maintaining margin monies, regulating delivery, and reporting trading data.
Who acts as a clearing house in India?
List of Clearing Corporations
| Sr. No. | Name | Valid Upto |
|---|---|---|
| 1 | India International Clearing Corporation (IFSC) Limited | Dec 28, 2020 |
| 2 | Indian Clearing Corporation Ltd. | Oct 02, 2020 |
| 3 | Metropolitan Clearing Corporation of India Ltd. | Oct 02, 2019 |
| 4 | Multi Commodity Exchange Clearing Corporation Ltd. | Jul 30, 2025 |
What are clearing corporations in India?
Clearing Corporation of India was first introduced under the ministry of the central counterparty in April 2001. The main objective of this corporation is to provide clearing and settlement for transactions in government securities, foreign exchange and money markets in the economy.
What is clearing house function of RBI?
6. Clearing house Function. In India the Reserve Bank of India acts as the clearinghouse for scheduled banks, which have statutory accounts with it. Through this function the Reserve Bank of India enables the banks to settle their transactions among various banks easily and economically.
Is RBI a clearing house?
Clearing House Functions The RBI acts as a clearing house for all member banks. This avoids unnecessary transfer of funds between the various banks.
Who are members of a clearing house?
Membership. Members of The Clearing House include JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Bank of New York Mellon Corp., Deutsche Bank AG, U.S. Bancorp and Wells Fargo & Co.
Is Sebi is a clearing house?
Clearing corporations maintain funds for guaranteeing trades, settlement and in case a buyer or a seller defaults. SEBI said NSCCL, ICCL and MCX-SXCCL have qualified as they are regulated by the SEBI Act and the Securities Contract (Regulation) Act.
Is SEBI is a clearing house?
How many clearing houses are there in India?
In India there are about 1050 cheques clearing houses. These clearing houses clear and settle transactions relating to various types of paper based instruments like cheques, drafts, payment orders, interest / dividend warrants, etc.
What is clearing house of central bank?
A clearing house is a financial institution formed to facilitate the exchange (i.e., clearance) of payments, securities, or derivatives transactions. The clearing house stands between two clearing firms (also known as member firms or participants).
Who owns clearing house?
largest commercial banks
The Clearing House is a banking association and payments company that is owned by the largest commercial banks and dates back to 1853.
How many banks are clearing in India?
NSE Clearing has empanelled 15 clearing banks namely Axis Bank Ltd., Bank of India, Canara Bank, Citibank N.A, HDFC Bank, Hongkong & Shanghai Banking Corporation Ltd., ICICI Bank, IDBI Bank, IndusInd Bank,JPMorgan Chase Bank, Kotak Mahindra Bank, Standard Chartered Bank, State Bank of India and Union Bank of India.
