Now Reading: Sebi proposes separate rulebook for clearing corporations
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Sebi proposes separate rulebook for clearing corporations
Sebi has proposed a separate Master Circular for clearing corporations to simplify rules governing market infrastructure institutions. The regulator has invited public comments on the consultation paper until August 27.
The Story in Brief
Sebi has proposed a separate Master Circular for clearing corporations to simplify rules governing market infrastructure institutions. The regulator has invited public comments on the consultation paper until August 27.
The proposal would consolidate clearing corporation provisions now spread across the Master Circular for Stock Exchanges and Clearing Corporations, issued in December 2024, and the Master Circular for Commodity Derivatives, issued in August 2023. Sebi also wants exchange-related rules moved to the Master Circular for Exchanges. Proposed changes include wider website disclosures on settlement guarantee funds, fewer filings for clearing corporations registered as depository participants, and removal of provisions already covered in other circulars.
The Indian Opinion
Claims that a new rulebook alone will make markets safer would be overstated. The useful test is whether consolidation reduces duplicate filings without weakening disclosures on settlement guarantee funds, default waterfalls and risk controls. Clearing corporations may not need retail depository reporting when they do not serve retail clients, but that exemption should be judged by operational safeguards. Public comments should focus on whether the final circular is clearer for both institutions and investors.
Source: livemint.com
This story was synthesised by AI from the source linked above.
