A Clearing House is a financial intermediary that acts as a central counterparty between buyers and sellers in financial markets. Its primary role is to ensure that trades are completed efficiently, securely, and with minimal risk. Once a trade is executed on a stock exchange, the Clearing House steps in and becomes the buyer to every seller and the seller to every buyer. This process eliminates direct counterparty risk and guarantees the settlement of trades even if one of the parties defaults. In modern financial markets, clearing houses play a vital role in maintaining market integrity, stability, transparency, and investor confidence. A Clearing House is generally associated with a Clearing Corporation, which performs clearing and settlement activities in stock exchanges. In India, organizations such as the National Securities Clearing Corporation Limited (NSCCL) and Indian Clearing Corporation Limited (ICCL) perform these functions for different exchanges. The major functions of a Clearing House are as follows: Trade Confirmation: After trades are executed on the stock exchange, the Clearing House verifies and confirms the details of every transaction. It ensures that the trade information received from both parties matches correctly before processing further. Clearing of Trades: The Clearing House determines the obligations of buyers and sellers by calculating the amount of securities and funds that need to be exchanged. It consolidates multiple transactions into net obligations, thereby reducing the number of settlements. Settlement Guarantee: One of the most