The Securities and Exchange Board of India (SEBI) on May 23, 2023, issued a circular regarding the Revision in the computation of the Core Settlement Guarantee Fund in the Commodity Derivatives Segment.
This Circular aims to protect the interests of investors in securities and to promote the development and regulate the securities market
This Circular shall come into effect from June 01, 2023.
The following has been stated namely: -
• This has a reference to the SEBI vide Circular CIR/MRD/DRMNP/25/2014 dated August 27, 2014, which had prescribed norms related to Core Settlement Guarantee Fund and the SEBI circular SEBI/HO/CDMRD/DRMP/CIR/P/2018/111 dated July 11, 2018, mandated a minimum amount of MRC of Rs.10 crores for Stock Exchanges having Commodity Derivatives Segment.
• It has been decided that the Clearing Corporation in Commodity Derivatives Segment shall align their core SGF in terms of the SEBI circular dated August 27, 2014, as well as July 11, 2018, and in case of excess contribution shall be returned to the contributing take holders on a pro-rata basis, after taking due approval from SEBI.
• The Stock Exchanges and Clearing Corporations are advised to perform the following namely: -
(i)Take steps to make necessary amendments to the relevant bye-laws, rules, and regulations for the implementation of this circular
(ii) Bring the provisions of this circular to the notice of the stock brokers of the Exchange and also disseminate the same on their website.
(iii) To Communicate to SEBI, the status of the implementation of the provisions of this circular in the Monthly Development Report.
• This circular is available on the SEBI website www.sebi.gov.in under the category “Circulars” and “Info for Commodity Derivatives”
[Circular No. SEBI/HO/MRD/MRD-POD-1/P/CIR /2023/78]
