The Securities and Exchange Board of India (SEBI) on August 06, 2026, issued the Consultation Paper on Settlement and Risk Management.
The following has been stated:
• The key proposals include discontinuing redundant reporting of margin short-collection/non-collection by Trading Members/Clearing Members, since CCs already receive daily client-wise collateral information; modifying margin verification so that Exchanges and CCs undertake verification for the entities falling within their respective responsibilities; and requiring CCs, in consultation with Exchanges, to formulate standard operating procedures (SOPs) for supervision of Clearing Members. This is intended to standardise supervision and avoid duplication.
• SEBI also proposes changes to the T+1 settlement framework, including updating the existing provisions to reflect the current settlement mechanism. The paper further proposes removing the obsolete framework relating to the dedicated debt segment, as there are no trades in that segment and the related trading provisions have already been removed. Going forward, the debt-segment risk-management framework would be prepared by CCs in consultation with SEBI.
• Another major focus is rationalisation of periodic filings and disclosures. For example, reporting of penalties relating to short/non-collection of margins is proposed to be streamlined, with Clearing Corporations disclosing aggregate, non-confidential information on their websites instead of maintaining duplicative reporting requirements.
• The consultation paper also proposes to consolidate/incorporate regulatory circulars and communications issued after the cut-off dates of the existing Master Circulars, covering matters such as SFG coverage, warehouse inspections, calendar-spread margin benefits, governance of Market Infrastructure Institutions (MIIs), T+0 settlement, penalty waivers, internal audit, optional T+0 settlement and commodity-derivative provisions.
• Stakeholders can provide comments on the proposals and draft circulars latest by August 27, 2026.
