Finance Bill 2023 Joint Submission

A Kenyan delegation led by the Chairmen of the Kenya Association of Stockbrokers and Investment Banks (KASIB) –Donald Wangunyu, the Nairobi Securities Exchange (NSE) – Kiprono Kittony, EBS and the Fund Managers Association (FMA) –Patrick Kariuki recently visited India on a fact finding mission and benchmarking exercise.

They visited the Clearing Corporation of India Ltd (CCIL) and with them is Hare Krishna Jena, Managing Director, CCIL. CCIL is a company established in 2001 to provide clearing and settlement functions which led to significant improvement in the market efficiency, transparency, liquidity and risk management/measurement practices in these market along with added benefits like reduced settlement and operational risk and savings on settlement costs. CCIL also provides non-guaranteed settlement for Rupee interest rate derivatives and cross currency transactions through the CLS Bank.

CCIL was recognized as a Qualified Central Counter Party (QCCP) by the Reserve Bank of India in 2014. It has also set up a Trade Repository to enable financial institutions to report their transactions in OTC derivatives. CCIL is also the Trade Repository for all OTC transactions in the Forex, Interest Rate and Credit derivative transactions. Currently, CCIL is the Calculation Agent for some of the important Benchmarks used by the market under the aegis of the Benchmark Administrator, Financial Benchmarks India Limited (FBIL). It is the only Central Counter Party with the mandate to clear G-secs, money market and forex instruments.

The delegation had previously met the National Stock Exchange of India (NSE)