Now Reading: Sebi proposes separate rulebook and wider role for clearing corporations
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Sebi proposes separate rulebook and wider role for clearing corporations
Sebi proposes separate rulebook and wider role for clearing corporations
Sebi has proposed a separate Master Circular for Clearing Corporations, seeking public comments by August 27. The plan would consolidate rules now spread across two master circulars, remove duplicate or outdated provisions…
The Story in Brief
Sebi has proposed a separate Master Circular for Clearing Corporations, seeking public comments by August 27. The plan would consolidate rules now spread across two master circulars, remove duplicate or outdated provisions and shift exchange-related requirements to the Master Circular for Exchanges.
The regulator also proposes making clearing corporations solely responsible for monitoring pay-in shortages and collecting penalties. Other changes include fewer periodic filings, wider website disclosures on Settlement Guarantee Funds, and replacing penalty thresholds linked to brokers’ base minimum capital with fixed monetary limits or a percentage of net worth. Sebi says the changes would simplify compliance and reflect the mandatory T+1 settlement system.
The Indian Opinion
Claims that Sebi is simply cutting red tape miss the trade-off. Clearer responsibility could reduce duplicated reporting, but giving clearing corporations more control also makes transparent disclosures and enforcement essential. Equally, the view that every old rule is useless ignores why settlement safeguards were created. The consultation should be judged by whether shortages are detected faster and penalties collected consistently after the new framework takes effect.
Sources (2): livemint.com, livemint.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
