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Sebi consults on separate master circular for clearing corporations
The regulator is inviting public comments until Aug 27 and proposes extending core settlement guarantee fund disclosures to all clearing segments.
Sebi has released a consultation paper aimed at streamlining the rules that apply to stock exchanges and clearing corporations, including creating a separate Master Circular dedicated to clearing corporations to remove duplication and clarify which provisions apply where, according to LiveMint Markets.
The consultation would merge clearing corporation provisions currently spread across the Master Circular for Stock Exchanges and Clearing Corporations issued in December 2024 and the Master Circular for Commodity Derivatives issued in August 2023 into a new, standalone clearing corporation master circular.
Sebi also proposed changes to website disclosure requirements for clearing corporations, extending certain disclosures to all segments. Those include details on the policy for composition and contributions to the Core Settlement Guarantee Fund, quarterly breakdowns of contributions, the investment policy for the Core SGF, and the default waterfall for each segment.
In addition, Sebi proposed exempting clearing corporations registered as depository participants from submitting periodic DP-related reports and filings to depositories, and it said it would remove or relocate other provisions that it believes are already covered in separate master circulars. Public comments are invited until Aug 27.