The Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2022

Aug 13, 2022 | by TeamLease RegTech Legal Research Team

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Secretarial ComplianceThe Securities and Exchange Board of India (SEBI) on August 11, 2022, issues the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2022 to further amend the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018. 

The following amendments have been made:

• Regulation 22C has been substituted with the following regulation, namely,— 

“22C. The governing board of a recognized limited purpose clearing corporation shall include: 

o nominee directors; 

o independent directors; 

o managing director; and 

o such other directors as may be specified by the Reserve Bank of India or the Board from time to time. 

The representative of the issuers of debt securities may be appointed on the governing board of the recognized limited purpose clearing corporation on a rotational basis and such a director shall be deemed to be a nominee director. 

Explanation.— For the purpose of sub-regulation (2), the representative of the issuers of debt securities during a financial year shall be one of the top three issuers, which are public sector undertakings, based on their issue size in the preceding financial year.”

• Regulation 22F has been substituted with the following regulation, namely,— 

“Dispute resolution Mechanism 22F. 

The recognized limited purpose clearing corporation shall put in place a dispute resolution mechanism, for settlement of disputes or claims arising out of transactions cleared and settled by it, in the manner as specified by the Board in consultation with the Reserve Bank of India.”

• After regulation 22F, the following regulations has been inserted, namely,— 

“General Provisions 22G. 

o The limited purpose clearing corporation shall ensure compliance with the provisions of these regulations as well as directions issued by the Reserve Bank of India. 

o In cases of different compliance requirements as specified under the provisions of these regulations and the directions issued by the Reserve Bank of India, the compliance requirements shall be made applicable to the limited purpose clearing corporation after consultation with the Reserve Bank of India. 

22H. In case the limited purpose clearing corporation is required to obtain the prior approval of the Board and the Reserve Bank of India, the limited purpose clearing corporation shall obtain the prior approval of the Board before seeking approval from the Reserve Bank of India.”

• After clause (1) of para VI of Part-H of the Schedule-II, the following clause has been inserted, namely,— 

“(1A) The limited purpose clearing corporation shall complete the appointment process for the managing directors within thirty days from the date of approval of the Reserve Bank of India and submit a compliance report within one week from the date of appointment.”

[Notification No. SEBI/LAD-NRO/GN/2022/93]


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