Credit of Penalty for short-collection/non-collection of Margins on Commodity Derivatives Segments to Core SGF

SEBI/HO/CDMRD/DRMP/CIR/P/2019/73 · 2019-06-20 · SEBI Division of Risk Management, Commodity Derivatives Market Regulation Department

Summary

This circular clarifies that penalties for short-collection or non-collection of margins in commodity derivatives segments must be credited to the Core SGF instead of the IPF. It mandates the transfer of any such penalties previously transferred to the IPF Trust back to the Core SGF, effective from when CCs started clearing functions. The directive is issued under Section 11(1) of the SEBI Act and Section 10 of the SCRA to ensure uniformity with SECC Regulations.

Text

all penalties levied on short-collection/non-collection of Margins as prescribed by SEBI Circular dated September 07, 2016 shall be credited to Core SGF only.

penalties... levied by CCs/Exchanges that have already been transferred to IPF Trust, the same shall be transferred to Core SGF, effective from the day on which CCs started clearing function for commodity derivatives segment.

This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992, read with Section 10 of the Securities Contracts (Regulation) Act, 1956.

This circular shall be effective from the date of the circular.

Source: SecMarx — Credit of Penalty for short-collection/non-collection of Margins on Commodity Derivatives Segments to Core SGF. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.