Clearing corporation ownership shift remains shrouded with uncertainty

Sources say diversified shareholding may create challenges in fundraising, will add complexities

The Securities and Exchange Board of India’s (Sebi’s) plan to hive off clearing corporations (CCs) from stock exchanges remains clouded. This comes as uncertainties remain related to profitability, working capital requirements, and contributions to the Settlement Guarantee Fund (SGF), industry sources said.

 

Unless these areas are addressed, it will be challenging to transfer ownership of CCs away from stock exchanges, they added.

 

Last week, Sebi chairperson Tuhin Kanta Pandey flagged ownership of CCs as a key issue — alongside governance, technology, and legal concerns. These need to be resolved before approving the National Stock Exchange’s (NSE’s) initial public offering (IPO).