A Clearing Corporation acts as an intermediary in financial transactions. It ensures the smooth settlement of trades. By managing counterparty risk, it enhances market stability. Clearing Corporations are vital in stock and derivatives markets. They facilitate the transfer of securities and funds. This promotes trust among investors. In India, they play a crucial role in the economy and financial regulation.
The Securities Markets Code Bill, recently introduced in the Lok Sabha, signals a quiet but potentially transformative shift in how India’s capital markets are structured. By firmly anchoring...