Joining NSDL as a Clearing Corporation / House
Any stock exchange desiring to facilitate settlement in demat shares should have a clearing corporation/house with a fully operational settlement guarantee mechanism. The settlement guarantee mechanism should have been approved by SEBI.
A clearing corporation or a clearing house of stock exchange shall be admitted as a User on the Depository only if
- The Depository is satisfied that the clearing corporation or a clearing house of a stock exchange operates in such a manner that it ensures payment against delivery or guarantees settlement;
- In the opinion of the Depository, the clearing corporation or a clearing house of a stock exchange has the operational capability to provide the services relating to clearing and settlement of transactions relating to the securities admitted to the Depository to the held in dematerialised form;
- The clearing corporation or a clearing house of a stock exchange undertakes to co-operate at all times to redress the grievances of Clients and the Participant in respect of its operation in relation to the Depository;
- The clearing corporation or a clearing house of a stock exchange has adequate hardware and software systems to interact with the Depository as specified in the Business Rules.
Procedure for joining NSDL, systems specification and investments and expenses to be incurred by a clearing corporation/house is same as that of Depository Participant.