NICCL has been granted recognition by European Securities & Markets Authority as a “third-country CCP”

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Gandhinagar, Gujarat, July 01, 2019: NSE IFSC Clearing Corporation Limited (NICCL), a wholly owned subsidiary of NSE Clearing Limited (formerly known as National Securities Clearing Corporation Limited) has been granted recognition by European Securities & Markets Authority (ESMA) as a “third- country CCP”under European Market Infrastructure Regulation (EMIR). The recognition to NSE IFSC Clearing Corporation Limited (NICCL) as a “third-country CCP” has been notified by ESMA on June 24, 2019.

Based on the ESMA recognition, entities in the European Union shall be able to consider NICCL as “Qualified CCP” under the Basel III rules. Due to this, European participants shall be able to apply a significantly lower risk towards their trade exposures to NICCL and thus be benefited substantially on account of lower capital requirements.

This recognition of NICCL would enable European based participants/banks to participate in GIFT IFSC. This development should give increased confidence and encourage increased participation from European based market intermediaries in India’s first International Financial Service Centre.

Vikram Kothari, MD & CEO, NSE Clearing, said, “GIFT IFSC is one of the key initiatives of Government of India to put India on the global map as a leading investment destination. Its economic footprint shall grow significantly and recognition to NICCL as Third-Country CCP by ESMA will further boost the confidence of Investors in GIFT IFSC”

NSE IFSC Clearing Corporation Limited (NICCL) is a fully owned subsidiary of NSE Clearing Limited (formerly known as National Securities Clearing Corporation Limited) (NSE Clearing). NSE International Clearing has received recognition as a Clearing Corporation under Regulation 4 of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 and Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015.