Write notes on Clearing Corporation.

Section 8A(1) of the Securities Contracts (Regulation) Act, 1956 provides that a recognized stock exchange may with the prior approval of SEBI, transfer the duties and functions of a clearing house to a clearing corporation being a company incorporated under the Companies Act, 2013 for the purpose of - the periodical settlement of contracts and differences thereunder; the delivery of and payment for, securities; any other matter incidental to, or connected with, such transfer. Sub-section (2) provides that every clearing corporation shall for the purpose of transfer of the duties and functions of a clearing house to a clearing corporation referred to in sub-section (1), make bye-laws and submit the same to the SEBI for its approval. Sub-section (3) provides that SEBI may, on being satisfied that it is in the interest of the trade and also in the public interest to transfer the duties and functions of a clearing house to a clearing corporation, grant approval to the bye-laws submitted to it and approve transfer of the duties and functions of a clearing house to a clearing corporation.