Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2019

Jun 05, 2019 | by Avantis RegTech Legal Research Team


The Securities and Exchange Board of India (SEBI) on June 04, 2019, has published the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2019 to further amend the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018. It will come into force on the date of their publication in the Official Gazette that is June 04, 2019.

The amendments made in Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 are:

 Regulation 2(1)(g) which talks about “commodity derivatives exchange” has been omitted.

 In Regulation 35(1) which talks about “Agreements between stock exchange and clearing corporation”, a proviso has been inserted, namely- 

“Provided that in case a recognised stock exchange enters into an arrangement with more than one recognised clearing corporation, it shall enter into a multipartite agreement in writing with such recognised clearing corporations to ensure interoperability among the clearing corporations.”

 In Regulation 37(1) which talks about “fund to guarantee settlement of trades”, the proviso has been omitted.

 After Regulation 43, a new Regulation 43A has been inserted, which specifies the “Obligation of Clearing Corporation in Commodity Derivatives” namely:

“Every recognized Clearing Corporation providing clearing and settlement services for commodity derivatives shall ensure guarantee for settlement of trades including good delivery. Explanation: For the purpose of this regulation, “good delivery” shall mean the delivery of goods that is in proper form to transfer title and is of the quality and quantity as per contract specifications of the concerned exchange.”

     This amendment shall deem to have come into force with effect from October 3, 2018.

 The amendments are also made in Schedule II, in Part E and H.

[Notification No. SEBI/LAD-NRO/GN/2019/21]

Click here to download the Notification.

 


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