What is the full form of CCIL?

Introduction

Clearing Corporation of India Ltd (CCIL) built in 2001 started its operations in the month of February of 2002. The prime purpose of the CCIL is settling or clearing any kind of money transaction. It settles various monetary transactions by banks, primary dealers and various other financial institutions.

It mostly deals with various instruments related to money market, foreign exchange and Government securities. By providing loyalty, CCIL has also become one of the main instruments for risk management.

What is the Full Form of CCIL?

The full form of the CCIL is the Clearing Corporation of India Ltd. As the name suggests, the main focus of the CCIL is to help various dealers and other monetary institutions to transact their money with as much clarity as possible. It not only helps the organisations or the individuals to safely transfer their money, but they also deal with the possible risks and problems that might come on the way.

What is The Clearing Corporation of India Ltd.?

India’s no. 1, the Clearing Corporation of India Ltd or CCIL, founded in 2001 is responsible for clearing any monetary settlement functions regarding money, G-Secs, foreign exchange and various derivative markets.

By taking responsibility for smooth money transactions, the CCIL has proven that transparency, efficiency, risk management are perhaps the most essential things. It has also become a trade repository for any OTC transaction and forex transaction.

Right now, CCIL is the agent which does all the calculation work for a few benchmarks which are run or directed by the backing of the Benchmark Administrator and FBIL or Financial Benchmark India Limited.

What is the Vision of the Clearing Corporation of India Ltd. (CCIL)?

Various business sectors usually raise long term capital from the market. These markets are divided into two parts, primary and secondary. Various shares and bonds are dealt with in the primary market. Various businesses issue their shares to the public. These markets ensure transparency while dealing with shares and investors.

However, the secondary market is a bit different from the primary market. Its main responsibility is to handle the security related to money transactions. So, the basic difference between the primary market and the secondary market is that where the primary market deals with the trade of prospective investors and companies, the secondary markets are the places where most of the trading happens.

All these dealings, managements, and money transactions are associated with a lot of risk. So, when the Clearing Corporation of India Ltd was established, its prime focus was to make the transactions easier than before. Also it started focusing on providing the required solutions for the possible risks.

Also, CCIL has another vision. Its main function is to observe the financial operations in the derivative market, exchange and money market and of course, foreign exchange market. By doing this, CCIL provides the guarantee of smooth transaction of money between various monetary institutions and business organisations.

Beside managing the possible risks, the Clearing Corporation of India Limited also provides assurance of liquidity in funds and securities.

CCIL has also been responsible for setting up various noticeable channels for bank credits. As a result, if an investor experiences any shortfall, the CCIL can provide compensation for that.

Organisation Structure of The Clearing Corporation of India Ltd. (CCIL)

The CCIL organisation structure is very tricky. It comes with various layers. Its entire structure is discussed below −

• The Clearing Corporation of India Ltd has a chairperson.

• Under that, one can find the post of the Managing Director.

• In terms of the operational part, CCIL comes with the Fixed Income and Money Market department.

• It also has a Collateral and Funds Management Department.

• Next, CCIL also has a Membership Department.

• Since CCIL comes with a Funds Management Department, it has to come with a Risk Management Department. There is a Margin Department under it.

• Now, the CCIL comes with a Forex Department. Under the Forex Department, it has CLS, FX Settlement, Derivatives, FX-Clear.

• It also has a Product Development Department.

• It has an NDS Operations Department.

• CCIL comes with an IT Support Department.

• It has an Economic Research and Surveillance Department.

• CCIL also comes with a Finance and Accounts Department.

• To understand the risks and provide the right solutions for those, the CCIL comes with a Legal, Secretarial and Compliance Department.

• Like any organisation, it also has a Human Resource Development Department.

• Last but not the least, it has an Administration And Premises Department.

Conclusion

The CCIL or Clearing Corporation of India Ltd, since its birth in 2001, has become the most promising risk management forum of India. Whether it is a normal bank transfer or an investor’s money-related transaction, the CCIL is the one stop destination for the monetary transaction and risk management.

The CCIL, with its complex and vast organisational structure has put focus on managing its own human resource team, which means it runs smoothly and provides nothing but transparency among the organisations and investors.

FAQs

Q1. Do you think without CCIL the transaction would have faced slow progress?

Ans: The CCIL is the most essential organisation in terms of monetary transactions. Its main purpose is to manage the risks associated with money transfer. So, yes, any money transfer, be it guaranteed or non-guaranteed, would have faced slow progress.

Q2. What does the Risk Management Department of CCIL do?

Ans: The Risk Management Department of CCIL analyses the risk associated with a fund transfer and helps to get rid of the possible risks.

Q3. Do you think that the CCIL can bridge the gap between buyers and sellers?

Ans: The CCIL helps to provide transparency and efficiency while doing money transfer. That is why it works as an instrument to bridge the gap between buyers and sellers.