NSE IFSC Clearing Corporation Limited (NICCL) is a fully owned subsidiary of NSE Clearing Limited (formerly known as National Securities Clearing Corporation Limited) (NSE Clearing). NICCL has received recognition as a Clearing Corporation under Regulation 4 of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 and Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015.
NICCL has commenced its operations since June 05, 2017. NICCL currently acts as a clearing corporation for all the trades executed on NSE IFSC Ltd, a fully owned subsidiary of National Stock Exchange of India (NSE). NICCL provides counter-party guarantee for the trades executed on NSE IFSC Ltd. to ensure efficient clearing and settlement for trades. It has also put in place a comprehensive risk management framework to eliminate or mitigate risks. Risk containment measures includes capital adequacy requirements of members, monitoring of member performance and track record, stringent margin requirements, real-time computation of positions/ margins and upfront collection of margins, imposition of various position limits and automatic disablement from trading when limits are breached etc. NICCL has adopted SPAN system for the purpose of real time initial margin computation. The SPAN methodology has been adopted to take an integrated view of the risk involved in each individual portfolio.
It has adopted best practices and principle in order to ensure robust risk management systems in line with CPMI IOSCO Principles for Financial Market Infrastructures (PFMIs).
NICCL has established and maintain Settlement Guarantee Fund (SGF) based on the norms defined by SEBI.