Friday July 22 2016
News Source: Global Exchanges
Focus: Trading Rules
Type: General
Country: India
BSE has announced amendments to the by-laws of Indian Clearing Corporation Limited which were published in the Gazette of India on July 16, 2016, and accordingly came into force from that date.
The provisions contained in the by-laws include amendments and additional wording related to the definition of Core Settlement Guarantee Funds and the definition of “netting” among others.
The amended by-Laws seek to establish a fund for each segment, known as the “Core Settlement Guarantee Fund” or by such nomenclature as Clearing Corporation may specify, in such manner as may be prescribed by Securities and Exchange Board of India (SEBI and such fund shall be used for the designated segment only.
Further clarification has been given that in the event of a clearing member failing to honour settlement commitments, the Core SGF shall be used to fulfil the obligations of that member and complete the settlement without affecting the normal settlement process.
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