The International Financial Services Centres Authority, having considered the application for grant of recognition

## Policy Analysis Report: Recognition of NSE IFSC Clearing Corporation Limited **1. Executive Summary:** This report analyzes a notification from the International Financial Services Centres Authority (IFSCA) granting recognition to NSE IFSC Clearing Corporation Limited. The notification, issued on May 25, 2022, grants the corporation the authority to operate as a clearing corporation for one year, subject to certain conditions. This recognition enables the clearing corporation to operate within the regulatory framework established by the IFSCA, contributing to the development and stability of the securities market within the International Financial Services Centre. **2. Introduction:** This report aims to provide an overview of a notification published by the International Financial Services Centres Authority (IFSCA) regarding the recognition of NSE IFSC Clearing Corporation Limited. The analysis is based solely on the provided text of the notification. **3. Policy Overview:** * This is a new policy granting recognition to an entity. * **Core Objective(s):** The core objective is to grant recognition to NSE IFSC Clearing Corporation Limited, enabling it to operate as a clearing corporation within the regulatory framework of the IFSCA. This is driven by the interest of trade, the securities market, and the public interest. **4. Background and Rationale:** * **New Policy:** The policy addresses the need to formally recognize and authorize NSE IFSC Clearing Corporation Limited to operate as a Market Infrastructure Institution (MII). The IFSCA likely assessed the application and determined that granting recognition would contribute to the functioning and development of the International Financial Services Centre (IFSC). The text references the IFSCA Market Infrastructure Institutions Regulations, 2021, implying a regulatory framework already in place. **5. Key Provisions / Changes:** * **New Policy:** * **Grant of Recognition:** The IFSCA grants recognition to NSE IFSC Clearing Corporation Limited. * **Duration:** The recognition is valid for one year, commencing on May 29, 2022, and expiring on May 28, 2023. * **Scope:** The recognition applies to contracts in securities. * **Conditions:** The Clearing Corporation must comply with conditions specified by IFSCA from time to time. * **Legal Basis:** The decision is based on Section 12 of the International Financial Services Centres Authority Act, 2019, and Section 4 read with subsection 4 of Section 8A of the Securities Contracts Regulation Act, 1956. * **Location:** The clearing corporation is located at Unit No. 1202, Brigade International Financial Centre, 12th Floor, Building No. 14A, Block 14, Zone1, GIFT SEZ, Gandhinagar, Gujarat 382355. **6. Target Audience and Stakeholders:** The primary target audience is NSE IFSC Clearing Corporation Limited. Other stakeholders include: * Participants in the International Financial Services Centre (IFSC) securities market. * Investors trading in securities cleared by the corporation. * The IFSCA as the regulatory body. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The IFSCA is the responsible authority for granting and overseeing the recognition. NSE IFSC Clearing Corporation Limited is responsible for complying with the conditions set by the IFSCA. * **Timelines:** The recognition is valid for one year, from May 29, 2022, to May 28, 2023. The clearing corporation must comply with any conditions specified by IFSCA "from time to time," suggesting ongoing monitoring and potential adjustments to the regulatory requirements. **8. Expected Outcomes / Impact of Changes:** * **New Policy:** * The recognition of NSE IFSC Clearing Corporation Limited is likely intended to facilitate efficient and secure clearing and settlement of securities transactions within the IFSC. * It is expected to promote investor confidence and contribute to the overall development of the securities market in the IFSC. * Compliance with IFSCA conditions is expected to ensure the corporation operates in a sound and prudent manner. **9. Conclusion:** The IFSCA notification grants recognition to NSE IFSC Clearing Corporation Limited, enabling it to operate as a clearing corporation within the IFSC for one year, subject to conditions set by the IFSCA. This decision supports the development of the securities market in the IFSC by providing a regulated framework for clearing and settlement. The corporation's adherence to IFSCA guidelines is crucial for maintaining market integrity and investor confidence.

Key Entities Referenced