Clearing corporations to ensure guarantee for settlement of trades: Sebi

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

The new regulation will come into force on October 1, the Securities and Exchange Board of India (Sebi) has said in a notification.

"Every recognised clearing corporation providing clearing and settlement services 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 clearing corporations 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 clearing corporations in commodity derivatives with equity as well as currency derivatives.