Redesigning the clearance and settlement process in the indian capital markets

Clearance and settlement process is at the core of the securities market infrastructure. This paper presents the importance of this process, describes the pre-redesign state of the Indian capital markets which was riddled with ineffective processes and regulations that led to a loss of investor confidence in the capital markets. In India the clearance and settlement process has been redesigned substantially due to various reasons including the integration of Indian capital markets with the global markets, growing trading volumes, various scams, and the need to boost investor confidence in the capital markets.