Regulation 37 - Fund to guarantee settlement of trades - Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018

Fund to guarantee settlement of trades 37. (1) Every recognised clearing corporation shall establish and maintain a Fund by whatever name called, for each segment, to guarantee the settlement of trades executed in respective segment of a recognised stock exchange: 1 [****] (2) In the event of a clearing member 2 [ or a participant ] failing to honour his settlement obligations, the Fund shall be utilized to complete the settlement. (3) The corpus of the Fund shall be adequate to meet the settlement obligations arising on account of failure of clearing member(s) 3 [ or participant(s) ] . (4) The sufficiency of the corpus of the Fund shall be tested by way of periodic stress tests, in the manner specified by the Board. (5) The utilization of the Fund shall be in accordance with the norms specified by the Board. ************* NOTES:- 1. Omitted vide NOTIFICATION No. SEBI/LAD-NRO/GN/2019/21 dated 04-06-2019 before it was read as , Provided that in case a recognised stock exchange enters into an arrangement with more than one recognised clearing corporation, it shall enter into a multipartite agreement in writing with such recognised clearing corporations to ensure interoperability among the clearing corporations. 2. Inserted vide Notification No. SEBI/LAD-NRO/GN/2023/139 dated 24-07-2023 3. Inserted vide Notification No. SEBI/LAD-NRO/GN/2023/139 dated 24-07-2023