Current · Source: Reserve Bank of India · RBI/2012-13/550 · issued 26 Jun 2013 · ~2 min read
Quick answerRBI has added MCX-SX Clearing Corporation Limited as an eligible clearing house for OTC corporate bond trades on a DvP-I basis, alongside NSCCL and ICCL. This expands settlement options for market participants.
The rule, in the simplest words
RBI has added MCX-SX Clearing Corporation Limited as a valid clearing house for Over-The-Counter (OTC) [trades that happen outside of a formal exchange] corporate bond trades
This adds to the existing options of NSCCL and ICCL, giving market participants [people and organizations buying and selling] more choices for settling trades
Settlements will happen on a Delivery versus Payment-I (DvP-I) [a system where the buyer receives the bond and the seller receives the payment at the same time] basis
How it plays out — a real example
A treasury officer in Mumbai can now use MCX-SX Clearing Corporation Limited to settle an OTC corporate bond trade, giving them more flexibility in their daily work and potentially reducing the risk of relying on just one or two clearing houses. This change can help the treasury officer manage their trades more efficiently and make their job easier. As a result, the treasury officer can focus on making more strategic decisions for their bank.
What changed
RBI reviewed its October 2009 directions on settlement of OTC corporate bond transactions and decided to include MCX-SX Clearing Corporation Limited as an additional eligible entity for clearing and settlement. Previously, only NSCCL or ICCL were permitted for this purpose.
What it means for you
Banks and other market participants now have a third clearing corporation option for settling OTC corporate bond trades, which could enhance operational flexibility and reduce concentration risk. This move may also foster competition among clearing houses, potentially leading to improved efficiency and lower costs for settlement services.
What you must do
Update internal operational guidelines to include MCX-SX Clearing Corporation Limited as a valid clearing entity for OTC corporate bond settlements.
Review and amend any existing agreements or standing instructions with counterparties to reflect the new eligible clearing house.
Train treasury and back-office teams on the procedures for using MCX-SXCCL for DvP-I settlement of corporate bonds.
Monitor any additional operational or risk management requirements from MCX-SXCCL for onboarding.
Who it affects
All market participants dealing in OTC corporate bonds, Treasury departments of banks, Clearing and settlement teams, Compliance and risk management functions
❓ Common questions
What is DvP-I basis?
Delivery versus Payment (DvP) Model I involves simultaneous settlement of securities and funds on a gross basis, ensuring that delivery of bonds occurs only if payment is made, reducing settlement risk.
Does this notification affect existing trades settled through NSCCL or ICCL?
No, existing arrangements remain valid. This circular only adds MCX-SXCCL as an additional option; participants may continue using NSCCL or ICCL as before.
When does this change take effect?
The circular was issued on June 26, 2013, and is effective from that date. No specific transition period is mentioned in the source.
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/550
IDMD.PCD. 11 /14.03.06/2012-13
June 26, 2013
To
All Market Participants
Dear Sir/Madam,
Settlement of OTC transactions in Corporate Bonds on DvP-I basis
Please refer to our Notification IDMD. No.1764/11.08.38/2009-10 dated October 16, 2009 on the captioned subject.
2. The above directions have been reviewed and it has been decided that MCX-SX Clearing Corporation Limited is also an eligible entity for clearing and settlement of all OTC trades in corporate bonds in addition to the NSCCL or ICCL.
Yours faithfully,
(K. K. Vohra)
Principal Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/550 · issued 26 Jun 2013. The plain-English explanation above is BankPulse’s own independent summary.
Review and amend any existing agreements or standing instructions with counterparties to reflect the new eligible clearing house.
⚙️ Operations
Update internal operational guidelines to include MCX-SX Clearing Corporation Limited as a valid clearing entity for OTC corporate bond settlements.
Train treasury and back-office teams on the procedures for using MCX-SXCCL for DvP-I settlement of corporate bonds.
📜 Compliance
Monitor any additional operational or risk management requirements from MCX-SXCCL for onboarding.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are an Operations officer at a bank this circular applies to (All market participants dealing in OTC corporate bonds, Treasury departments of banks, Clearing and settlement teams, Compliance and risk management functions), your first concrete step on “MCX-SXCCL Added for Corporate Bond OTC Settlement” is: “Update internal operational guidelines to include MCX-SX Clearing Corporation Limited as a valid clearing entity for OTC corporate bond settlements.” (RBI issued this 26 Jun 2013).
Circular: RBI/2012-13/550 -- MCX-SXCCL Added for Corporate Bond OTC Settlement
Issued: 26 Jun 2013
Action required: Update internal operational guidelines to include MCX-SX Clearing Corporation Limited as a valid clearing entity for OTC corporate bond settlements.
Action required: Review and amend any existing agreements or standing instructions with counterparties to reflect the new eligible clearing house.
Action required: Train treasury and back-office teams on the procedures for using MCX-SXCCL for DvP-I settlement of corporate bonds.
Action required: Monitor any additional operational or risk management requirements from MCX-SXCCL for onboarding.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8063&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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