The Securities and Exchange Board of India (SEBI) on December 19, 2023, issued a circular regarding the Principles of Financial Market Infrastructures (PFMIs).
SEBI vide its Circulars No. CIR/MRD/DRMNP/26/2013 dated September 04, 2013, and No. SEBI/HO/CDMRD/DMP/CIR/P/2016/137 dated December 16, 2016, stated that as a member of IOSCO, SEBI is committed to the adoption and implementation of the CPSS-IOSCO Principles for Financial Market Infrastructures (FMIs) in its regulatory functions of oversight, supervision and governance of the key FMIs under its purview.
The PFMIs issued in April 2012 comprise 24 principles (Annexure 1), which are designed to ensure that the infrastructure supporting global financial markets is robust and well-placed to withstand financial shocks.
The Principles apply to systematically important FMI entities such as Central Counterparty (CCP), Central Securities Depository (CSD)/Securities Settlement System (SSS), Payment and Settlement Systems (PSS) and Trade Repository (TR) which are responsible for providing clearing, settlement and recording of monetary and other financial transactions.
The principles are international standards set forth to-
• Enhance safety and efficiency in payment, clearing, settlement, and recording arrangements,
• Reduce systemic risk
• Foster transparency and financial stability
• Promote the protection of participants and investors
For more details, kindly view the circular attached to the document below.
[Circular no. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2023/190]
