SEBI Directs Participants’ Contribution to ‘Core Settlement Guarantee Fund’ of Limited Purpose Clearing Corporation
- Blog|News|Company Law|
- < 1 minute
- By Taxmann
- |
- Last Updated on 21 June, 2024
Latest from Taxmann
Circular No. SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/83; Dated: 19.06.2024
Earlier, SEBI prescribed guidelines for contributions to the Core Settlement Guarantee Fund (SGF) of Limited Purpose Clearing Corporation (LPCC) and its default waterfall. SEBI now directs the contribution of participants who desire direct participation, not through a clearing member, to SGF, subject to a certain condition.
The condition states that no exposure shall be available on the Core SGF contribution of any participant (exposure-free collateral of participants available with CC can be considered towards Core SGF contribution of participants) and that required contributions of individual participants must be pro-rata based on the risk they bring to the system.
Further, LPCC must have the flexibility to collect primary contributions, including the flexibility to collect the participant’s primary contribution upfront or staggered over a period of time.
If LPCC does not seek contribution from participants or seeks staggered contribution, the remaining balance must be met by LPCC to ensure the adequacy of the total Core SGF corpus at all times. Such LPCC contribution must be available to LPCC for withdrawal as and when further contributions from participants are collected or received.
Click Here To Read The Full Circular
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
