Transfer of excess contribution made by Stock Exchanges from Core SGF of one Clearing Corporation to the Core SGF of another Clearing Corporation

Securities and Exchange Board of India

CIRCULAR

SEBI/HO/MRD2/DCAP/CIR/P/2021/03

January 08, 2021

All recognized Stock Exchanges and Clearing Corporations

Sub: Transfer of excess contribution made by Stock Exchanges from Core SGF of one Clearing Corporation to the Core SGF of another Clearing Corporation

1. SEBI, vide Circular No.CIR/MRD/DRMNP/25/2014 dated August 27, 2014, prescribed norms for contribution by a Stock Exchange to Core SGF of a Clearing Corporation. Further, SEBI, vide Circular No. CIR/MRD/DRMNP/CIR/P/2018/145 dated November 27, 2018, prescribed broad guidelines for operationalizing the interoperable framework among Clearing Corporations.

2. SEBI has been receiving representations from Stock Exchanges, requesting to allow transfer of excess contribution made by Stock Exchanges from Core SGF of one Clearing Corporation to the Core SGF of another Clearing Corporation, in inter-operable scenario.

3. The above representations have been examined and it has been decided to allow transfer of excess contribution made by Stock Exchanges from Core SGF of one Clearing Corporation to the Core SGF of another Clearing Corporation, in inter-operable scenario. However, Stock Exchanges and Clearing Corporations are advised to ensure the following:

a) Upon receipt of request from an Exchange in this regard, the Clearing Corporation which receives such request shall transfer directly such excess contribution of the Exchange, in its Core SGF to the core SGF of another Clearing Corporation, under intimation to that Exchange.

5. For Example, if Exchange ‘A’ requests to transfer its excess contribution from Core SGF of Clearing Corporation ’B’ to Core SGF of Clearing Corporation ‘C’ then after receipt of such request from ‘A’, ‘B’ would transfer directly the excess contribution of ‘A’ from Core SGF of ‘B’ to Core SGF of ‘C’, under intimation to Exchange ‘A’.

b) The Clearing Corporations shall ensure compliance with requirements of Minimum Required Corpus (MRC) of Core SGF as prescribed by SEBI.

4. This circular is being issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market

Sudeep Mishra
General Manager
Tel no.: 022-26449365
Email: Sudeepm@sebi.gov.in