Glossary
/Clearing Corporation
Every time you buy or sell a stock, you don't actually deal directly with the other person. This invisible middleman steps in to act as the buyer to every seller and the seller to every buyer. It completely removes the risk that the other party will run away without paying or delivering the shares. In India, NSE Clearing Limited and BOI Shareholding manage this massive daily task. Without them, the stock market would be a chaotic mess where nobody trusts anyone to actually finish a trade.