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.