It is being argued that capital benefit to market participants should be provided only for the transactions settled through those CCPs which are fully compliant with the principles enunciated by CPSS and IOSCO. The exposure to non-compliant CCPs would attract higher capital charge. Indian context 30.
In India, the bank balance sheets are relatively less aligned with capital market – both on the asset side as well as liability side. Capital in the form of subordinated debt and other non-equity instruments constitutes only around 38 per cent of total capital. Issuance of such instruments is restricted by the limit on non-equity elements of regulatory capital.