CrackitToday App

Limited Purpose Clearing Corporation

Limited Purpose Clearing Corporation:

The Securities and Exchange Board of India (SEBI) put in place a dispute resolution mechanism for Limited Purpose Clearing Corporation (LPCC) to settle disputes and claims arising out of transactions cleared by it.

  • It is an entity established to undertake the activity of clearing and settlement of repo transactions.
  • The mechanism will be used
    • To settle disputes between clearing members;
    • Contention between the clearing members and their clients
    • Differences between the LPCC and its vendors
    • Disputes between clearing members or its clients and the LPCC.
  • The disputes arising between clearing members of the LPCC will be settled by conciliation and/or by an arbitration panel consisting of three clearing members, other than the clearing members who are party to the dispute.
  • The decision of the arbitration panel would be final and binding on the parties.
  • In case a clearing member or the LPCC is not satisfied then the disputes would be resolved under the procedure laid down in the Payment and Settlement Systems Act, 2007.