International Central Securities Depositories (ICSDs)

International Central Securities Depositories (ICSDs)

Subject – Economy

Context – The Reserve Bank of India (RBI) is planning to enable international settlement of transactions in government securities (G-secs) through International Central Securities Depositories (ICSDs), to help expand the investor base for the G-secs market, RBI Governor Shaktikanta Das said.

Concept –

• An international CSD is a central securities depository that settles trades in international securities such as Eurobonds, although many also settle trades in various domestic securities, usually through direct or indirect (through local agents) links to local CSDs.
• Examples of international CSDs include Clear stream (previously Cedel), Euroclear and SIX SIS.
• A central securities depository (CSD) that settles domestic and international securities transactions and typically offers additional services such as securities lending and collateral management.