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TMI BlogGuidelines for functioning of Stock Exchanges and Clearing Corporations in International Financial Services Centre (IFSC)X X X X Extracts X X X X X X X X Extracts X X X X ..... ng and regulating financial services relating to securities market in an IFSC set up under section 18(1) of Special Economic Zones Act, 2005. 2. Based on representations received from the market participants on the proposed market structure and risk management framework and subsequent to deliberations in Secondary Market Advisory Committee (SMAC) and Risk Management Review Committee (RMRC), it has been decided to put in place the broad framework for functioning of stock exchanges and clearing corporations in IFSC as under: 2.1. Market Structure: There shall be a single market structure to achieve synergies in terms of various operations and to facilitate ease of doing business. 2.2. Trading Hours and Settlement: The trading hou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ructures (PFMIs), in addition to adherence to the following: 2.6.1. Margining framework: Clearing Corporations in IFSC shall evolve a margining framework based on the best practices prevailing in the Clearing Corporations globally. However, Clearing Corporations shall be required to conduct stress tests, reverse stress tests, back testing, liquidity stress testing, etc. to ensure the robustness of risk management framework. Further, Clearing Corporations shall ensure that the margining framework is compliant with CPMI IOSCO PFMIs at all times. 2.6.2. Ring-fencing: Any Indian recognized stock exchange or clearing corporation forming a clearing corporation in IFSC shall take into consideration the following: a) Clearing Corporati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall avail the arbitration, mediation and other dispute resolution mechanisms offered by International Arbitration Centre in IFSC to resolve securities market-related disputes. 2.8. Business Continuity Plan (BCP) and Disaster Recovery (DR): The Disaster Recovery Site (DRS) shall be set up sufficiently away, i.e. in a different seismic zone, from Primary Data Centre (PDC) to ensure that both DRS and PDC are not affected by the same disasters. Stock exchanges and clearing corporations in IFSC shall take adequate steps in a time-bound manner to comply with all the other provisions of SEBI circulars on Business Continuity Plan (BCP) and Disaster Recovery (DR) viz. SEBI circular no. CIR/MRD/DMS/12/2012 dated April 13, 2012 and circular no. CI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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