All the secondary market transactions in Government Securities are settled through Clearing Corporation of India Limited (CCIL). The entire settlement is achieved under DVP III mode. Multilateral netting is achieved for each settlement date. A single funds settlement obligation for each member for a particular settlement date is determined by netting all his secondary market Government securities transactions for that settlement date. The settlement is achieved in the RTGS Settlement / Current Account maintained by the member in RBI and for those members who are either not allowed to maintain or operate a Current Account with RBI for settlement of their secondary market transaction in Government securities, at the Designated Settlement Bank. Multilateral netting for securities are achieved by netting of securities for each member based on SGL / CSGL and then for each ISIN. Thus benefit of multilateral netting is made available to all members for whom CCIL is facilitating settlement of trades. CCIL acts as Central Counter Party to all Government securities trade and provides settlement guarantee based on adequacy of margins, thereby facilitating smooth settlement with multilateral netting benefits, reducing gridlocks and mitigates a cascading impact of default by one member on others.