The Securities and Exchange Board of India (SEBI) on October 01, 2024, issued a circular regarding the review of the Stress Testing Framework for the Equity Derivatives segment for determining the corpus of the Core Settlement Guarantee Fund.
The following has been stated: -
•The Securities and Exchange Board of India (SEBI) reviews the Stress Testing Framework for Equity Derivatives to ensure the adequacy of the Core Settlement Guarantee Fund.
•The framework assesses potential losses in extreme market conditions to determine the required corpus.
•SEBI aims to enhance the resilience of the equity derivatives market and protect clearing corporations' default funds.
•The review seeks to optimize the stress testing methodology and maintain market stability.
The detailed circular is given in the document below.
[Circular No. SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/131]
