Power Exchange India Limited
India's first institutionally promoted Power Exchange that provides innovative and credible solutions to transform the Indian Power Markets. more...
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Home » Clearing » Introduction
 Introduction
 
What is clearing?
The term ‘Clearing’ denotes the process of determination of obligations of Members of Exchange resulting from conclusion of a transaction at the Exchange.
 
The process involves notifying the buyer of his payment obligation and the seller of his funds receipt due to execution of trade where power would flow from seller to buyer. 
 

What is settlement?
The term ‘Settlement’ denotes the process of discharging the obligations of Members resulting from conclusion of a transaction at the Exchange.

The Exchange works on principle of ‘novation’, i.e. it acts as central counter-party to all the transactions. This averts the need of members to ascertain credit-worthiness of every counter party separately. The ‘PXIL Clearing & Settlement’ system is very robust incorporating adequate margin and risk mitigation mechanisms to ensure risk free trading on the exchange platform.

PXIL Settlement Dates

For the buyer
The buyer has to make the payment to PXIL for his obligation before 11:00 am in his Settlement Account in the designated Clearing Bank on the Pay-in day as prescribed by the Exchange. This pay-in includes the trade value, open-access charges, transaction charges, other charges and taxes as may be prescribed by the Exchange.
 
For the seller
The exchange pays to the seller for his pay-out obligation by 11:30 am in the Settlement account in the designated Clearing Bank on the Pay-out day as prescribed by the Exchange. The pay-out consists of the Net trade value after deducting the open-access charges, transaction charges, other charges and taxes as may be prescribed by the Exchange.