Regulation 44D - Provisions applicable to commodity derivatives exchanges - Securities Contracts (Regulation) (Stock Exchanges And Clearing Corporations) Regulations, 2012

1 [44D. Provisions applicable to commodity derivatives exchanges. (1) Every commodity derivatives exchange shall comply with the provisions for recognized stock exchanges in these regulations in the manner and within the timelines as specified by the Board: Provided that- (a) a commodity derivatives exchange may continue with the existing arrangement for clearing and settlement of trades for a period not exceeding three years from the date of commencement of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2015, and till the functions of clearing and settlement are transferred to a separate clearing corporation, the provisions of sub-regulation (4) of Regulation 7 and Regulations 31, 39 and 44B shall continue to apply to a commodity derivatives exchange, as they apply to a recognized clearing corporation, to the extent that they are applicable; (b) clause (b) of sub-regulation (1) of Regulation 29 shall not be applicable to a commodity derivatives exchange; (c) no commodity derivatives exchange shall engage in any activity other than that of assisting, regulating or controlling the business of buying, selling or dealing in commodity derivatives 2 [ and option in securities ] , except with the prior permission of the Board; (d) every national commodity derivatives exchange shall credit the settlement related penalties to its Settlement Guarantee Fund and other penalties to its Investor Protection Fund and every regional commodity derivatives exchange shall credit all penalties to its Settlement Guarantee Fund till such time as may be specified by the Board. (2) Every commodity derivatives exchange shall ensure guarantee for settlement of trades including good delivery. ] ********* Notes 1. Inserted vide Notification No.SEBI/LAD-NRO/GN/2015-16/016 dated 08-09-2015 w.e.f 28-09-2015 2. Inserted vide Notification No. SEBI/LAD-NRO/GN/2017-18/003 dated 26-05-2017