For all trades executed on a given day, it is important to determine the obligations standing at the end of the day against parties to trade. This process of ascertaining obligations is known as clearing, and the process of meeting or discharging these obligations is known as settlement. NSCCL is the corporation that deals with all clearing and settlement activities at NSE.

The National Securities Clearing Corporation Limited, a subsidiary of National Stock Exchange of India Ltd., was incorporated in August 1995 to carry out the clearing and settlement of the trades executed in the Equities and Derivatives segments of NSE. It also operates Subsidiary General Ledger (SGL) for settlement of trades in government securities and undertakes settlement of transactions on other stock exchanges like the Over the Counter Exchange of India (OTCEI). NSCCL commenced clearing operations in April 1996. The purpose behind setting up NSCCL was:

To bring and sustain confidence in clearing and settlement of securities. To promote and maintain, short, consistent and well defined settlement cycles without any deviations. To provide counter-party risk guarantee. To operate a tight risk containment system.

NSCCL aggregates trades executed over a trading period, assesses the net positions in order to find out the liabilities of the members. Finally, it ensures that the respective liabilities are met with a regular movement of funds and securities.

Settlement Calender
NSCCL issues a notification on a monthly basis which represents the schedule for settlement of trades taking place in that particular month.