The International Financial Services Centre Authority (IFSCA) on March 07, 2025, issued a circular regarding contribution to the Settlement Guarantee Fund (SGF).
The following has been stated: -
•IFSCA has amended the MII Regulations, defining a clearing corporation's net worth based on its liquid assets, including cash, fixed deposits, and government securities. Regulation 31 allows contributions to the Settlement Guarantee Fund (SGF) from the Clearing Corporation, Stock Exchange, and Clearing Members.
•The contribution from the Clearing Corporation to the SGF will be considered part of its net worth, and interest on cash contributions will accrue to the SGF and be distributed pro-rata. This circular is issued under the IFSCA Act, 2019.
The detailed circular is given in the document below.
[Circular No.IFSCA/CMD-DMIIT/SGF/2024-25/001]
