Page 69 - DCOM507_STOCK_MARKET_OPERATIONS

Stock Market Operations

Notes Risk Management

The NSCCL has also incorporated risk containment measures. A risk group constituted by the
NSCCL (National Securities Clearing Corporation Limited) identified additional areas of
perceived risk and intensified the monitoring of members’ position having concentration in
certain high-risk securities that attract high volumes and volatility.
Also a structured exercise of requiring unusually high pay-in liability members to make advance
pay-in of funds has been put in place, in addition to offering facility of early pay-in of securities
in demat mode.

Securities Lending/Borrowing

The automated lending and borrowing mechanism of the NSCCL (National Securities Clearing
Corporation Limited) provides a facility to lend/borrow securities/funds at market-determined
rates. This facilitates timely delivery of securities and thereby improves the efficiency of the
system.
Professional Clearing Membership

The NSCCL (National Securities Clearing Corporation Limited) started the Professional Clearing
Membership and the Stock Holding Clearing Corporation Ltd. has been admitted as the first
professional clearing member on CM Segment.

Derivatives Settlement

The NSCCL (National Securities Clearing Corporation Limited) also provides clearing and
settlement services including risk management for the derivatives market.
Multiple Depositories

The Central Depositories Securities Limited (CDSL) has been connected to the NSCCL (National
Securities Clearing Corporation Limited) and clearing and settlement of securities in
dematerialised form through the CDSL has also been introduced.

Did u know? The NSCCL (National Securities Clearing Corporation Limited) accepts FDRs
drawn in its favour and maintains them in its custody. This has added value in services to
the members as they are not any longer required to pay custodial charges but can be given
instantaneous credit and benefit.

Task Visit www.nseindia.com and make a note on the minimum services that the clearing
banks are required to provide to all clearing members of National Securities Clearing
Corporation Ltd. as also to the Clearing Corporation

Self Assessment

Fill in the blanks:

14. NSCCL stands for ....................................
15. CDSL stands for ....................................

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