The Securities and Exchange Board of India (SEBI) has issued a circular on December 19, 2023, addressing the Principles of Financial Market Infrastructures (PFMIs).
Overview of PFMIs: SEBI, as a member of IOSCO, is dedicated to adopting and implementing the CPSS-IOSCO Principles for Financial Market Infrastructures (FMIs). The PFMIs, comprising 24 principles, aim to fortify the global financial market infrastructure against financial shocks. Applicability and Categories of FMIs: The PFMIs are applicable to systematically important FMIs, including Central Counter-parties (CCP), Central Securities Depository (CSD)/Securities Settlement System (SSS), Payment and Settlement Systems (PSS), and Trade Repository (TR). These entities play a critical role in clearing, settlement, and recording of monetary and other financial transactions
Self-assessment and Disclosure: SEBI emphasizes the self-assessment of FMIs against PFMIs, classified as quantitative and qualitative.
Quantitative– Quarterly (within 30 days from the end of the quarter – June, September, December and March) Qualitative- Annually (within 30 days from the end of the financial year) Monitoring and Assessment: FMIs will be monitored annually by the Regulatory Oversight Committee (ROC), with reports submitted to the governing board of the FMI and SEBI within 60 days from the end of the financial year.
The provisions of this Circular shall come into force from the quarter end December, 2023.
Link – https://www.sebi.gov.in/legal/circulars/dec-2023/principles-of-financial-market-infrastructures-pfmis-_80014.html
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