What is the purpose of the Clearing Corporation of

Solution

The Clearing Corporation of India Limited (CCIL) is a subsidiary of the Reserve Bank of India (RBI) and provides centralized clearing and settlement services for trades in the money, government securities, and forex markets. CCIL was established in April 2001 to bring about improvements in the functioning of the market and to ensure the safety and stability of the market. The main function of CCIL is to act as a counterparty to all trades executed in the markets it operates in and to guarantee the settlement of these trades. Hence, option C is correct.