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Clearing corporations to ensure guarantee for settlement of trades: Sebi

The decision was aimed at aligning rules pertaining to base minimum capital requirement and liquid networth of clearing corporations

Press Trust of India  |  New Delhi 

Sebi. (Photo: Kamlesh Pednekar)
Sebi. (Photo: Kamlesh Pednekar)

corporations providing services for commodity derivatives will have to ensure guarantee for settlement of trades including goods delivery, regulator Sebi has said.

The new regulation will come into force on October 1, the (Sebi) has said in a notification.

"Every recognised corporation providing and for commodity derivatives shall ensure guarantee for settlement of trades including goods delivery," added the notification dated April 2.

The regulator had said last month that members of in the commodity derivatives segment will need to have a minimum liquid networth of Rs 50 lakh.

Liquid networth refers to a clearing member's liquid assets after adjusting for applicable margins.

The decision was aimed at aligning rules pertaining to base minimum capital requirement and liquid networth of in commodity derivatives with equity as well as currency derivatives.

First Published: Wed, April 04 2018. 14:30 IST
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