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    Question

    What is the purpose of the Clearing Corporation of India Limited (CCIL) in the Indian capital market?

    A To regulate and supervise the functioning of stock exchanges in India Correct Answer Incorrect Answer
    B To provide a platform for trading of commodity futures contracts Correct Answer Incorrect Answer
    C To provide centralized clearing and settlement services for trades in the money, government securities, and forex markets Correct Answer Incorrect Answer
    D To provide loans to companies for their working capital needs Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The Clearing Corporation of India Limited (CCIL) is a subsidiary of the Reserve Bank of India (RBI) and provides centralized clearing and settlement services for trades in the money, government securities, and forex markets. CCIL was established in April 2001 to bring about improvements in the functioning of the market and to ensure the safety and stability of the market. The main function of CCIL is to act as a counterparty to all trades executed in the markets it operates in and to guarantee the settlement of these trades. Hence, option C is correct.

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