Sebi seeks public comments to reset clearing corp norms

Planning a major revamp of regulations governing clearing corporations, Sebi today sought public consultations on a new set of norms to enable inter-operability of entities.
Currently, different stock exchanges have their own clearing corporations (CCs), which handle settlement of trades on the respective bourses.
The Securities and Exchange Board of India (Sebi) has sought public comments till September 24 on recommendations of a committee on clearing corporations led by eminent banker K V Kamath.
The report of the committee was placed before the Sebi board at its meeting last month, which took note of it and approved the proposal to seek feedback.

The panel has recommended on issues including inter-operability among clearing corporations and investment by them, among others.
The committee, which had been entrusted with the task of defining 'liquid assets' of CCs for the purpose of calculation of net worth, also reviewed the existing regulations on transfer of profits every year by bourses to CCs.

One of the recommendations includes a review of transfer of 25 per cent profit every year to recognised clearing corporations and that of depositories to their investor protection funds.
Major exchanges in the country include BSE and NSE, both of which have their own CCs.

The two depositories registered with Sebi are NSDL and CDSL.