Corrigendum to Circular on Ease of Doing Business in the context of Standard Operating Procedure for payment of Financial Disincentives by Market Infrastructure Institutions (MIIs) as a result of Technical Glitch
Summary
This circular amends a previous SEBI directive regarding financial disincentives for Market Infrastructure Institutions caused by technical glitches. It explicitly incorporates references to the Master Circular for Commodity Derivatives Segment dated August 04, 2023, into specific paragraphs of the September 20, 2024 circular. Additionally, it mandates internal examinations and accountability measures for individuals responsible for such technical glitches within MIIs.
Text
The abovementioned Circular is applicable to all the MIIs including the Commodity Derivatives Exchanges/Clearing Corporations.
Para 1 and 4 of SEBI Circular dated September 20, 2024, shall include reference to para 16.8 of Master Circular for Commodity Derivatives Segment dated August 04, 2023.
Para 4.1 of SEBI Circular dated September 20, 2024, shall include para 16.8.1 of Master Circular for Commodity Derivatives Segment dated August 04, 2023.
Para 4.2 of SEBI Circular dated September 20, 2024, shall include Clauses 3,4,5 of Annexure-ZF to the Master Circular for Commodity Derivatives Segment dated August 04, 2023.
Para 4.3 of SEBI Circular dated September 20, 2024, shall include Clause 6 of Annexure-ZF to the Master Circular for Commodity Derivatives Segment dated August 04, 2023.
Para 4.4 of SEBI Circular dated September 20, 2024, shall include Clauses 7 and 8 of Annexure-ZF to the Master Circular for Commodity Derivatives Segment dated August 04, 2023.
SEBI on identification of the Technical Glitch resulting into Financial Disincentive to the MIIs, or upon receipt of the information of any such instance shall provide an opportunity to the concerned MIIs to make their submissions in respect of the facts of the case.
MIIs shall carry out internal examination pertaining to occurrence of technical glitches to ascertain individual accountability and take appropriate action including suitable recording and reckoning in the performance appraisal of those individuals.
SEBI would retain the right to initiate enforcement action against the individuals at the MII, if there is sufficient ground to do so.
Source: SecMarx — Corrigendum to Circular on Ease of Doing Business in the context of Standard Operating Procedure for payment of Financial Disincentives by Market Infrastructure Institutions (MIIs) as a result of Technical Glitch. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.