The Securities and Exchange Board of India (SEBI) on July 25, 2023, issued the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Second Amendment) Regulations, 2023 to further amend the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018.
The following has been stated namely: -
• Regulation 22D which states “Contribution to the Settlement Guarantee Fund” the following has been amended namely: -
“The contribution to the Fund as specified in regulation 37 shall be made by the recognized limited purpose clearing corporation, the clearing members, participants, and issuers of the debt securities, in the manner as may be specified by the Board from time to time.
• Regulation 37 which states “Fund to guarantee settlement of trades” the following has been stated namely: -
1. Sub-regulation (2) has been amended namely: -
“In the event of a clearing member or a participant failing to honour his settlement obligations, the Fund shall be utilized to complete the settlement.
2. Sub-regulation (3) has been amended namely: -
“The corpus of the Fund shall be adequate to meet the settlement obligations arising on account of failure of clearing member(s) or participant(s)”
[Notification No. SEBI/LAD-NRO/GN/2023/139]
