๐๐๐๐ ๐ฉ๐ซ๐จ๐ฉ๐จ๐ฌ๐๐ฌ ๐ฆ๐๐ฃ๐จ๐ซ ๐ซ๐๐ญ๐ข๐จ๐ง๐๐ฅ๐ข๐ฌ๐๐ญ๐ข๐จ๐ง ๐จ๐ ๐ญ๐ก๐ ๐ฌ๐๐ญ๐ญ๐ฅ๐๐ฆ๐๐ง๐ญ ๐๐ง๐ ๐ซ๐ข๐ฌ๐ค-๐ฆ๐๐ง๐๐ ๐๐ฆ๐๐ง๐ญ ๐๐ซ๐๐ฆ๐๐ฐ๐จ๐ซ๐ค
The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing changes to the settlement and risk-management provisions applicable to stock exchanges and clearing corporations. The paper is the fifth and final part of SEBI‘s review of these Market Infrastructure Institutions and aims to simplify regulation, remove obsolete and duplicative provisions, clarify responsibilities and reduce compliance burdens.
๐๐๐ฒ ๐ฉ๐ซ๐จ๐ฉ๐จ๐ฌ๐๐ฅ๐ฌ ๐ข๐ง๐๐ฅ๐ฎ๐๐:
1. ๐๐ฏ๐ต๐ช๐ต๐บ- ๐ด๐ฑ๐ฆ๐ค๐ช๐ง๐ช๐ค ๐๐ข๐ด๐ต๐ฆ๐ณ ๐๐ช๐ณ๐ค๐ถ๐ญ๐ข๐ณ๐ด: Requirements for stock exchanges and clearing corporations would be separated, with provisions currently spread across multiple circulars consolidated into a dedicated framework for clearing corporations.
2. ๐๐ฆ๐ท๐ช๐ด๐ฆ๐ฅ ๐ฑ๐ข๐บ-๐ช๐ฏ ๐ด๐ฉ๐ฐ๐ณ๐ต๐ง๐ข๐ญ๐ญ ๐ต๐ฉ๐ณ๐ฆ๐ด๐ฉ๐ฐ๐ญ๐ฅ๐ด: Action for a single shortfall would be linked to the lower of 1% of the prescribed base net worth or INR 5 lakh. For six instances within three months, the threshold would be the lower of 0.4% or INR 2 lakh.
3. ๐๐ญ๐ฆ๐ข๐ณ๐ฆ๐ณ ๐๐ฆ๐ด๐ฑ๐ฐ๐ฏ๐ด๐ช๐ฃ๐ช๐ญ๐ช๐ต๐ช๐ฆ๐ด: Clearing corporations would generally oversee margin reporting, shortfall monitoring and related penalties, while exchanges would continue supervising trading members.
4. ๐๐ฆ๐ฅ๐ถ๐ค๐ฆ๐ฅ ๐ณ๐ฆ๐ฑ๐ฐ๐ณ๐ต๐ช๐ฏ๐จ: SEBI proposes discontinuing T+5 margin shortfall reporting and certain quarterly net-worth, PFMI and other periodic filings, while retaining annual or exception-based oversight.
5. ๐๐ณ๐ฆ๐ข๐ต๐ฆ๐ณ ๐ต๐ณ๐ข๐ฏ๐ด๐ฑ๐ข๐ณ๐ฆ๐ฏ๐ค๐บ: Information on margin-shortfall penalties would be published on clearing corporationsโ websites, and Settlement Guarantee Fund disclosures would be standardised.
6. ๐๐ฐ๐ฅ๐ฆ๐ณ๐ฏ๐ช๐ด๐ฆ๐ฅ ๐ด๐ฆ๐ต๐ต๐ญ๐ฆ๐ฎ๐ฆ๐ฏ๐ต: Coordinated procedures would address unscheduled holidays, while obsolete T+2 and โno-delivery periodโ provisions would be removed.
7. ๐๐ฐ๐ฎ๐ฎ๐ฐ๐ฅ๐ช๐ต๐ช๐ฆ๐ด ๐ข๐ฏ๐ฅ ๐ฅ๐ฆ๐ณ๐ช๐ท๐ข๐ต๐ฆ๐ด ๐ณ๐ฆ๐ง๐ฐ๐ณ๐ฎ๐ด: The proposals rationalise delivery-centre reviews, consolidate derivatives risk-management provisions and remove certain unnecessary filings.
Clearer accountability, lower compliance costs, improved disclosures and stronger operational preparedness could support more efficient and resilient capital markets.
Public comments are invited until August 27, 2026.
Readers may share their views with Regstreet Law Advisors at info@regstreetlaw.com.