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ICCL takes Counterparty Default Insurance for Rs. 375 crore

ICCL remains committed to the safety of investors and members and to further add to this security, ICCL has subscribed to a unique Insurance Policy for Rs. 375 Crore.

March 10, 2014 3:42 IST | India Infoline News Service
BSE's Clearing Corporation, ICCL has taken a defaults insurance cover of Rs. 375 Crore from United India Assurance. It is a very unique deal in this sector. After the 2008 financial crisis, default risks were not covered by Insurers or were covered for very small amounts. Rs. 375 Crore is more than twice the expected 1 day loss for ICCL in all open positions put together as per the various stress scenarios tested by ICCL. ICCL has slowly moved to secure itself further by creating such defences. Recently, ICCL was granted "IND AAA" rating by India Ratings ltd and Care Ratings Ltd.

ICCL remains committed to the safety of investors and members and to further add to this security, ICCL has subscribed to a unique Insurance Policy for Rs. 375 Crore. The objective of the Policy is to protect ICCL against counterparty defaults, and add a further capital cushion to the ICCL networth making the resources of the non-defaulting members even safer. The policy also adds to the ability of ICCL to absorb higher losses before any resources of the non-defaulting members are put at risk.

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