Regulation 28 - Segregation of functions - Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018

1 [ Segregation of functions 28. (1) Every recognised stock exchange and recognised clearing corporation shall identify its functions and segregate them into the following verticals: (a) Critical Operations; (b) Regulatory, Compliance, Risk Management and Investor Grievances; and (c) Other functions including business development. (2) The functions of the verticals under sub-regulation (1) above are provided at Part C of Schedule II of these regulations. (3) The functions under the verticals as provided at clause (a) and (b) of sub-regulation (1) shall be given higher priority in terms of resource allocation by the recognised stock exchange and recognised clearing corporation over the functions under the vertical as provided at clause (c) of sub-regulation (1). (4) Every recognised stock exchange and recognised clearing corporation shall periodically and objectively assess the adequacy of resources allocated to the first two verticals as specified in sub-regulation (1). (5) Every recognised stock exchange and recognised clearing corporation shall adopt a Chinese Wall policy which separates the functions under vertical as provided at clause (b) of sub-regulation (1) from the functions of other verticals. (6) The employees referred to in sub-regulation (5) shall not communicate any information concerning their activity to any one in other verticals and may be physically segregated from employees in other verticals including with respect to access controls: Provided that in exceptional circumstances, employees from other verticals may be given confidential information on need to know basis, under intimation to the compliance officer. ] *************** NOTES:- 1. Substituted vide Notification No. SEBI/LAD-NRO/GN/2023/124 dated 28-02-2023 (shall come into force on the one hundred and eightieth day from the date of their publication in the Official Gazette) before it was read as, Segregation of regulatory departments 28. The recognised stock exchange and recognised clearing corporation shall segregate its regulatory departments from other departments in the manner specified in Part - C of Schedule - II of these regulations.