The Securities and Exchange Board of India (SEBI) on May 19, 2023, issued a Consultation Paper on the proposal enabling direct participation by clients/ participants in the Limited Purpose Clearing Corporation - tri-party repo for corporate bonds.
The following has been stated namely: -
• Amendment to the Stock Broker Regulations:
1. Insertion of a second proviso to regulation 10A (Application for registration under Chapter II-Registration of Clearing Members) providing that no separate registration with the LPCC would be required for an entity for participating in the tri-party repo segment for corporate bonds.
• Amendment to the SECC Regulations:
1. Amendment to Regulation 22D (Contribution to the Settlement Guarantee Fund (SGF) - under Chapter IV–A: Limited Purpose Clearing Corporation) enabling contribution to the Core SGF by direct clients/participants.
2. Amendment to Regulation 37(2) (Fund to guarantee settlement of trades under Chapter VI: General Obligations) empowering the Clearing Corporation to utilize the Core SGF also in the event, a direct client/participant fails to honour its settlement obligations.
The Comments may be sent by May 29, 2023, in the prescribed format to
1. Pradeep Ramakrishnan - [email protected]
2. Nikhil Chaudhary - [email protected]
3. Kiran Dhembre - [email protected]
Or may be sent by Post to Pradeep Ramakrishnan, General Manager
