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What is the relationship of NDS to Clearing Corporation of India Limited (CCIL) ?

April 26, 2017ccil clearing corporation India limited NDs relationship

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What is the relationship of NDS to Clearing Corporation of India Limited (CCIL) ?

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NDS is an electronic trading platform which will also provide interface to Securities Settlement System. CCIL is an agency which will extend guaranteed settlement for trades done/reported on NDS in government securities including Treasury Bills, both outright and Repos through the process of Novation. 2.20. What is the process of Novation and what are the advantages of settling trades through the CCIL ? Novation is the process by which government securities transactions are settled through CCIL. This means that CCIL will act as a buyer to the seller of security and simultaneously will act as a seller to the buyer of the security. This will in effect remove the credit risk faced by members vis-à-vis their counterparties. Besides, CCIL provides the additional comfort of improved risk management practices through daily marking to market of collateral, maintenance of daily margins by members and through a Guarantee Fund.