ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -NSE Clearing Limited (formerly known as National Securities Clearing Corporation Limited), NSE Clearing, a wholly owned subsidiary of NSE is responsible for clearing and settlement of all trades executed on NSE and deposit and collateral management and risk management functions.

Detailed explanation-2: -NSCCL carries out the clearing and settlement of the trades executed in the equities and derivatives segments of the NSE. It operates a well-defined settlement cycle and there are no deviations or deferments from this cycle.

Detailed explanation-3: -The clearing function of the clearing corporation is designed to work out a) what members are due to deliver and b) what members are due to receive on the settlement date. Settlement is a two way process which involves transfer of funds and securities on the settlement date.

Detailed explanation-4: -The settlement of trades is on T+1 working day basis. Members with a funds pay-in obligation are required to have clear funds in their primary clearing account on or before 09.00 a.m. on the settlement day. The payout of funds is credited to the primary clearing account of the members thereafter.