Clearing Corps in Commodity Derivatives can now Align Core Settlement Guarantee Fund as per SEBI Circulars
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- Last Updated on 25 May, 2023
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Circular No. SEBI/HO/MRD/MRD-POD-1/P/CIR /2023/78, Dated 23.05.2023
Earlier, SEBI vide dated August 27, 2014 had prescribed norms related to Core Settlement Guarantee Fund (Core SGF), Default waterfall and Stress Test for recognised Clearing Corporations and Stock Exchanges.
The circular also provides detailed guidelines regarding, inter-alia, computation of Minimum Required Corpus of core SGF as well as contribution to core SGF. Further, SEBI vide circular dated July 11, 2018 mandated a minimum amount of MRC of Rs.10 crores for Stock Exchanges having Commodity Derivatives Segment (CDS).
Earlier, while granting recognition to Clearing Corporations in 2018, Clearing Corporations were mandated to augment their core SGF/earmark additional funds to the respective target corpus level in the subsequent years.
Recently, SEBI received the representations from Clearing Corporations that the target corpus level prescribed at the time of recognition of Clearing Corporations may be reviewed and methodology for computation of core SGF corpus in Commodity Derivatives Segment may now be harmonised with that of other segments.
Now, SEBI directed that the Clearing Corporations in Commodity Derivatives Segment may now align their core SGF in terms of SEBI circulars dated August 27, 2014 as well as July 11, 2018. The circular shall come into effect from June 01, 2023.
Click Here To Read The Full Circular
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