SEBI releases investment policy of Clearing Corporations

Dec 02, 2019 | by Avantis RegTech Legal Research Team

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The Securities Exchange Board of India (SEBI) on November 28, 2019, has released investment policy of Clearing Corporations vide Circular SEBI/HO/MRD/DRMNP/CIR/P/2016/54 dated May 04, 2016. The Circular SEBI/HO/MRD/DRMNP/CIR/P/2016/54 dated May 04, 2016 is regarding the Investment Policy, Liquid Assets for the purpose of Calculation of Net Worth of a Clearing Corporation and Transfer of Profits. 

SEBI has permitted the Clearing Corporations to make investments in Fixed Deposits with Banks (which have a net worth of more than INR 500cr. and are rated A1 (or A1+) or equivalent), Central Government Securities and Liquid schemes of debt mutual funds (subject to a limit of ten percent of the total investible resources held by the Clearing Corporation, at any point in time).

Considering the review of investment avenues and feedback received, SEBI has decided to permit the Clearing Corporations to make investments in Overnight Funds, except the Liquid Funds and Overnight Funds which shall not exceed a limit of ten percent of the total investible resources.

The provisions of this circular shall come into force with immediate effect.

[SEBI/HO/MRD2/DCAP/CIR/P/2019/145]

 


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