Economics • Banking & FinanceMedium
Which organization in India acts as the central counterparty for clearing and settling trades in government securities, money market instruments, and foreign exchange markets?
A. National Payments Corporation of India
B. Clearing Corporation of India Limited (CCIL)✓ Correct Answer
C. Securities and Exchange Board of India
D. Deposit Insurance and Credit Guarantee Corporation
💡 Solution & Explanation
The Clearing Corporation of India Limited acts as an industry-wide central counterparty providing guaranteed clearing and settlement services for transactions executed in government securities, money markets, and foreign exchange markets. This institutional mechanism eliminates bilateral counterparty settlement risks in financial transactions.
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