SEBI revises settlement guarantee fund norms for commodity derivatives clearing corporations
Moneycontrol
SEBI updated rules for settlement guarantee funds for commodity derivatives, requiring stress tests for multiple clearing member defaults.Summary
The Securities and Exchange Board of India (SEBI) has revised the norms for the settlement guarantee fund (SGF) applicable to commodity derivatives clearing corporations. The updated rules now mandate stress tests that account for the default of three or more clearing members. Additionally, SEBI has introduced a provision allowing it to grant exemptions or relaxations from the strict enforcement of SGF rules on a case-by-case basis, considering specific market conditions. This move aims to enhance the stability and risk management within the commodity derivatives segment.
(Source：Moneycontrol)