India : CPSS-IOSCO Recommendations for Securities Settlement Systems and Central Counterparties

Abstract

The securities and derivatives clearing
 and settlement systems in India are organized around
 different types of products, which are (1) government
 securities, money market instruments and forex instruments;
 (2) corporate securities and financial derivatives; and (3)
 commodity derivatives. The scope of this assessment is
 limited to the clearing and settlement systems for the first
 two sets of products. The different sets are subject to
 different legal frameworks, different regulatory
 arrangements and the clearing and settlement systems are
 operated by different entities. The different securities and
 derivatives clearing and settlement systems handle a large
 number of transactions and are as such of systemic
 importance. Volumes in the derivatives segments increased
 strongly during the last years. Given the growth and volumes
 of the commodity derivatives market it is recommended that a
 detailed self-assessment by the Forwards Market Commission
 (FMC) and/or an independent assessment of the commodity
 derivatives clearing and settlement systems be considered in
 the immediate future.