The Securities and Exchange Board of India (SEBI) on June 29, 2022 has issued a press release and took certain decisions in the Board meeting.
The following decisions have been made:
• Amendments to Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 (SECC Regulations) – provisions relating to Limited Purpose Clearing Corporation (LPCC) for clearing and settlement of Corporate Bond Repo Transactions
The Board considered and approved the proposals for making amendments to the provisions of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 to align the provisions of the SECC regulations with those of the RBI Central Counter Party Directions, 2018.
• In respect of the requirements of the RBI’s Directions for Central Counterparties and the Payment and Settlements Systems Act, 2007 (PSS Act) administered by RBI, the Board considered and approved the following proposals:
a. Over time, the LPCC shall put in place a mechanism for infusion of additional capital in a phased manner, in line with the risk management and increasing trading volumes in order to meet the net worth requirements under the PSS Act and;
b. SEBI, in consultation with RBI, will review the outsourcing agreements of the LPCC in relation to its core and critical IT support infrastructure / activities for running the core activities (transaction process, clearing and settlement) after two or three years.
• Amendment to SEBI (Mutual Funds) Regulations, 1996
The Board approved amendment to SEBI (Mutual Funds) Regulations, 1996 to remove applicability of the definition of “associate” as per the said regulations to such sponsors, which invest in various companies on behalf of the beneficiaries of insurance policies or such other schemes as may be specified by the Board from time to time.
• Amendment to SEBI (Portfolio Managers) Regulations, 2020
The Board considered the proposals and approved the amendments to the SEBI (Portfolio Managers) Regulations, 2020, to enhance prudential norms for investments by portfolio managers including investments in associates/ related parties.
• SEBI Annual Report: 2021-22
The Board considered and approved the SEBI Annual Report: 2021-22. In compliance with Section 18(2) of SEBI Act, 1992, the Annual Report would be submitted to the Central Government.
[Press Release No.21/2022]
