CCIL Full Form| What is CCIL-Guaranteed Clearing and Settlement functions?

CCIL Full Form

CCIL Full Form-What is CCIL? How It Can Benefit You: CCIL  was set up in April, 2001 to provide guaranteed clearing and settlement functions.

CCIL Full Form

Clearing Corporation of India Ltd.

FAQs about CCIL

This company runs the securities lending business and operates the clearing system for securities lending in India. It also provides Clearing, Risk Management and Portfolio Management services to the members. The clearing and settlement functions of the company ensure that the transactions of both large-scale institutional investors and smaller retail investors are settled in a timely manner. It also supports the development of capital markets in India. How CCIL helps you CCIL operates the India Securities Lending Corporation Ltd. (ISLC), which is the entity providing the clearing and settlement services. ISLC receives clearing and settlement funds in the form of cash and securities for trading for its clients. It also lends money to brokerages and investors on margin.

Firstly, CCIL provides the clearing of all types of trades and transactions executed between India-based trade participants and others with foreign counterparts. Further, CCIL manages the corporate debt, equity, foreign currency and commodity markets as well as the sovereign debt market. According to CCIL's official website, CCIL's core activities are to provide overnight and settlement services for trading in government securities, bonds, equities, foreign exchange and commodities, including interests rate derivatives, interest rate and credit swaps, interest rate futures and options, forwards and negotiable certificates of deposit. It also provides a full range of securities lending, securities borrowing and lending services.

CCIL serves customers across the whole trade cycle: from the pre-trade and intra-trade to the post-trade stage. It is spread over 18 cities in India. It has established itself as a key player in Indian capital market with offices in Bengaluru, Kolkata, Kochi, New Delhi, Mumbai, Hyderabad, Lucknow, Patna, Raipur, Ranchi, Surat, Chandigarh, Nagpur, Chennai, Guwahati, Jaipur and Ahmedabad. As on July 1, 2017, CCIL serves more than 6,500 participants, including mutual funds, pension funds, foreign portfolio investors, insurance companies, brokers, dealers, investors and the entire trading community, as also significant non-equity participants.

Before joining CCIL, corporates have to agree to a number of different criteria, a term sheet with signed articles and conditions of various types which the company should agree to at the time of joining. There are some features that are common to all corporates when joining. These are the CCIL Assurance Agreements and policies. Corporates agree to pay a membership fee to join CCIL which is a compulsory fee. This is a non-refundable amount. The CCIL membership fee is equal to the sum of the interests payable by corporates to their partners in their finance companies. This amount will vary according to the value of the corporates' credit facilities from their finance companies and interest rates for these facilities.

Clearing and Centralised Investment Institution (CCII) are the two major components of the Indian financial market, which in one fell swoop could bring substantial changes in the financial sector of India.