ESMA recognises NICCL as third-country CCP

The National Stock Exchange Monday said it's subsidiary NSE IFSC Clearing Corporation Limited (NICCL) has been recognised by European Securities and Markets Authority (ESMA) as a third-country CCP. "This recognition of NICCL would enable European based participants/banks to participate in GIFT IFSC," the National Stock Exchange (NSE) said in a release.

The move is expected to increase confidence and encourage participation from Europe-based market intermediaries in India's first International Financial Service Centre (IFSC), it added. Post the recognition, European entities would be able to apply a significantly lower risk towards their trade exposures to NICCL and thus benefit substantially on account of lower capital requirements, it added.

"GIFT IFSC is one of the key initiatives of the Government of India to put India on the global map as a leading investment destination. Its economic footprint shall grow significantly and recognition to NICCL as third-country CCP by ESMA will further boost the confidence of investors in GIFT IFSC" said Vikram Kothari, MD and CEO, NSE Clearing.