Question:
Who determines the schedule for allocation of securities during settlement?
Who determines the schedule for allocation of securities during settlement?
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The NSCCL acts as the legal counterparty to every trade (the buyer to every seller and the seller to every buyer), giving investors confidence that their trades will be settled.
Updated On: Jun 22, 2026
- Depository Participant
- Trading Member
- NSCCL
- Custodian
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The Correct Option is C
Solution and Explanation
Step 1: Identifying Post-Trade Clearing and Settlement Entities:
Once a trade is executed on an exchange, the clearing and settlement process begins. This process is managed by a specialized centralized agency.
Step 2: Defining the Role of NSCCL:
The National Securities Clearing Corporation Limited (NSCCL, now known as NSE Clearing Limited) is a wholly owned subsidiary of the NSE. It acts as the Central Counterparty (CCP), guaranteeing trade settlement and managing counterparty risk.
Step 3: Scheduling Pay-in and Pay-out:
NSCCL is responsible for netting outstanding trade obligations, defining pay-in and pay-out schedules, and setting the official settlement calendar for the allocation and delivery of securities. Therefore, the correct option is NSCCL (C).
Once a trade is executed on an exchange, the clearing and settlement process begins. This process is managed by a specialized centralized agency.
Step 2: Defining the Role of NSCCL:
The National Securities Clearing Corporation Limited (NSCCL, now known as NSE Clearing Limited) is a wholly owned subsidiary of the NSE. It acts as the Central Counterparty (CCP), guaranteeing trade settlement and managing counterparty risk.
Step 3: Scheduling Pay-in and Pay-out:
NSCCL is responsible for netting outstanding trade obligations, defining pay-in and pay-out schedules, and setting the official settlement calendar for the allocation and delivery of securities. Therefore, the correct option is NSCCL (C).
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