Sebi on 23rd May revised the methodology for clearing corporations with regard to computation of core Settlement Guarantee Fund corpus in commodity derivatives segment.
A core Settlement Guarantee Fund (SGF) is a corpus used for settlement of trades during defaults and all intermediaries, stock exchanges, clearing corporations and brokers contribute towards it.
SEBI received representations from clearing corporations that in light of the turnover and the open interest observed at the stock exchanges in the recent times, the target corpus level prescribed in 2018 need to be reviewed and methodology for computation of core SGF corpus in commodity derivatives segment.
The clearing corporations in commodity derivatives segment can now align their core SGF in terms of its framework issued in August 2014 and July 2018 and excess contribution may be returned to the contributing stakeholders on a pro-rata basis, after taking due approval from SEBI.
The circular shall come into effect from June 01, 2023.
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