Revision in computation of Core Settlement Guarantee Fund in Commodity Derivatives Segment
Summary
SEBI revises the computation methodology for the Core Settlement Guarantee Fund (Core SGF) in the Commodity Derivatives Segment to harmonize it with other market segments. Clearing Corporations are directed to align their Core SGF contributions according to existing circulars, with any excess funds to be returned pro-rata after SEBI approval. The revised norms become effective from June 1, 2023, requiring Stock Exchanges and Clearing Corporations to amend bye-laws and report implementation status.
Text
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 and excess contribution, if any, may be returned to the contributing stakeholders on a pro-rata basis, after taking due approval from SEBI.
The circular shall come into effect from June 01, 2023.
This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Take steps to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of this circular;
bring the provisions of this circular to the notice of the stock brokers of the Exchange and also to disseminate the same on their website;
Communicate to SEBI, the status of the implementation of the provisions of this circular in the Monthly Development Report.
Source: SecMarx — Revision in computation of Core Settlement Guarantee Fund in Commodity Derivatives Segment. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.