SEBI has granted recognition to Multi Commodity Exchange Clearing Corporation Ltd. (MCXCCL), a wholly owned subsidiary of Multi Commodity Exchange of India Ltd (MCX), as a Clearing Corporation. MCXCCL operates a well-defined settlement cycle and ensures no deviations or deferments from this cycle. MCXCCL collects margin from the members, effect pay-in and pay-out and oversee delivery and settlement process. MCXCCL assumes the counter party risk of the clearing members for all the trades done on MCX. MCXCCL facilitates deliveries in various commodities across multiple locations in India. MCXCCL provides Electronic Commodity Accounting and Receipts Tracking System through web based portal ‘Commodity Receipts Information Systems’ (COMRIS). In terms of novation, it guarantees funds pay-out to its Clearing Members till marking of delivery and financial compensation (to make good losses of non-defaulting party) in case of default (in goods or funds pay-in) after marking of delivery.