Current · Source: Reserve Bank of India · RBI/2012-13/551 · issued 26 Jun 2013 · ~2 min read
Quick answerRBI has added MCX-SX Clearing Corporation Limited as an eligible entity for clearing and settling OTC trades in Certificates of Deposit and Commercial Papers, alongside NSCCL and ICCL.
The rule, in the simplest words
RBI (India's central bank) added a new company called MCX-SX Clearing Corporation Limited to the list of places that can handle the final exchange of money and papers for CD (Certificate of Deposit, a bank's promise to pay back money) and CP (Commercial Paper, a company's promise to pay back money) trades that happen outside a stock exchange (OTC trades).
Before this, only two companies – NSCCL and ICCL – could do this job. Now there are three, so banks and traders have more choices.
This change does not change any other rules about how CDs and CPs work; it only adds one more option for clearing (making sure the trade finishes smoothly).
How it plays out — a real example
Ravi, a payments & clearing officer in Indore, also handles short-term money market trades for his bank. He used to send all his CD and CP OTC trades only to NSCCL for clearing. After reading this RBI update, he updates his internal list to include MCX-SX Clearing Corporation Limited, giving his team a third option to settle trades, which might lower costs or speed up the process.
What changed
RBI reviewed its earlier March 2012 directions on settlement of OTC transactions in CDs and CPs. It has now decided to include MCX-SX Clearing Corporation Limited as an additional eligible clearing and settlement entity. This expands the list of approved clearing corporations beyond NSCCL and ICCL.
What it means for you
Banks and market participants now have a third clearing option for OTC trades in CDs and CPs, which could improve operational flexibility and reduce settlement risk. The move may also enhance competition among clearing houses, potentially lowering costs for members. However, the core regulatory framework for these instruments remains unchanged.
What you must do
Update your internal list of approved clearing corporations for CD and CP OTC trades to include MCX-SX Clearing Corporation Limited.
Review and amend any bilateral agreements or operational procedures that reference only NSCCL or ICCL.
Inform your trading and settlement teams about the new eligible clearing entity.
Assess whether using MCX-SX Clearing Corporation offers any cost or efficiency benefits for your CD/CP portfolio.
Who it affects
All market participants trading OTC in CDs and CPs, Clearing members of MCX-SX Clearing Corporation Limited, Banks and primary dealers dealing in money market instruments, Operations and settlement teams handling CD/CP trades
❓ Common questions
Does this notification change any other rules for CD or CP trading?
No, this notification only adds MCX-SX Clearing Corporation Limited as an eligible clearing entity. All other existing directions on OTC trading in CDs and CPs remain unchanged.
When does this change take effect?
The notification was issued on June 26, 2013, and is effective from that date. Market participants should comply immediately.
Do I need to migrate all my CD/CP trades to the new clearing house?
No, migration is not mandatory. You may continue using NSCCL or ICCL, or choose MCX-SX Clearing Corporation as per your operational convenience.
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/551
IDMD.PCD. 12/14.03.02/2012-13
June 26, 2013
To All Market Participants
Dear Sir/Madam,
Settlement of OTC transactions in Certificates of Deposit (CDs) and Commercial Papers (CPs)
Please refer to our Notification IDMD.PCD.No.20/14.01.02/2011-12 dated March 05, 2012 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 CDs and CPs 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/2012-13/551 · issued 26 Jun 2013. The plain-English explanation above is BankPulse’s own independent summary.
Update your internal list of approved clearing corporations for CD and CP OTC trades to include MCX-SX Clearing Corporation Limited.
Inform your trading and settlement teams about the new eligible clearing entity.
Assess whether using MCX-SX Clearing Corporation offers any cost or efficiency benefits for your CD/CP portfolio.
📜 Compliance
Review and amend any bilateral agreements or operational procedures that reference only NSCCL or ICCL.
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 trading OTC in CDs and CPs, Clearing members of MCX-SX Clearing Corporation Limited, Banks and primary dealers dealing in money market instruments, Operations and settlement teams handling CD/CP trades), your first concrete step on “New clearing house for CD and CP OTC trades” is: “Update your internal list of approved clearing corporations for CD and CP OTC trades to include MCX-SX Clearing Corporation Limited.” (RBI issued this 26 Jun 2013).
Circular: RBI/2012-13/551 -- New clearing house for CD and CP OTC trades
Issued: 26 Jun 2013
Action required: Update your internal list of approved clearing corporations for CD and CP OTC trades to include MCX-SX Clearing Corporation Limited.
Action required: Review and amend any bilateral agreements or operational procedures that reference only NSCCL or ICCL.
Action required: Inform your trading and settlement teams about the new eligible clearing entity.
Action required: Assess whether using MCX-SX Clearing Corporation offers any cost or efficiency benefits for your CD/CP portfolio.
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=8065&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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