Recognition of clearing corporations requires prescribed governance, comprehensive clearing and risk-management infrastructure for regulatory approval. Application and grant procedure for recognition/renewal of a clearing corporation under the Regulations requires submission of constitutional documents, bye-laws, prescribed fees and an annexure detailing corporate structure, audited financials, membership criteria, governing board composition and powers, and comprehensive clearing, settlement and risk-management arrangements including the maintenance, stress-testing and governance of a Settlement Guarantee Fund; infrastructure, connectivity, business continuity and arbitration mechanisms are also required, and recognition is granted conditionally by the Board under statutory powers.