Hedge funds have long used arrangements that allow them to execute trades with several dealers but then to consolidate the clearing and settlement of their trades at a single firm, the "prime broker." The prime broker typically provides financing and back-office accounting services to the hedge fund as well as settlement services.
The domestic financial system regulators in India have put in place a system of monitoring designated financial conglomerates that focuses on assessment of inter-group and intra-group linkages and evaluation of the systemic risk emanating from the interconnectedness of the FCs.