INDIA: CARE Reaffirms Indian Clearing Corporation Limited’s “AAA Rating”

Thursday April 5 2018

On 3^rd April 2018, Indian based rating agency CARE, reaffirmed the Indian Clearing Corporation Limited (ICCL) AAA Rating. ICCL is a wholly-owned subsidiary of the Bombay Stock Exchanges (BSE) and acts as the Central Clearing Counterparty for the BSE.

ICCL clears and settles trades executed on all the segments of BSE, including Equity Cash, BSE SME, Offer for Sale, Securities Lending & Borrowing, Equity Derivatives, Debt Segment, Sovereign Gold Bonds, Interest Rate Futures and the Currency Derivatives Segment. It also settles trades reported on the Indian Corporate Debt Segment and the Mutual Fund segment of BSE.

The Rationale behind CAREs reaffirmed rating was based on the ICCL’s strong capitalisation levels, efficient corporate governance and risk management framework, strong regulatory supervision by the Securities and Exchange Board of India (SEBI) and adequate Core Settlement Guarantee Fund .The rating also acknowledges ICCL’s business subject to the volatility in clearing volumes, Continued parentage, profitability, capitalisation levels and BSE’s competitive position are the key rating sensitivities.

CARE is registered with the Securities and Exchange Board of India (SEBI) and also recognised as an External Credit Assessment Institution (ECAI) by the Reserve Bank of India (RBI).

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