Investment Policy, Liquid Assets for the purpose of Calculation of Net Worth of a Clearing Corporation and Transfer of Profits

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..... k Exchanges and Clearing Corporations. 2) Further, SEBI vide circular CIR/MRD/DRMNP/25/2014 dated August 27, 2014, prescribed the guidelines on Core Settlement Guarantee Fund (CSGF), Default Waterfall and Stress Test. 3) SEBI had also constituted an expert Committee on Clearing Corporations (hereinafter referred to as 'Committee'), to examine, inter-alia, the issues pertaining to (a) Investment Policy of a Clearing Corporation, (b) Liquid assets for calculation of Net worth of a Clearing Corporation, and (c) Regulation 33 of SECC Regulations on 'Transfer of Profits'. 4) The recommendations of the committee were placed before the SEBI Board. As per the decision of the Board, the Clearing Corporations are advised to c .....

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..... by the Clearing Corporation within six months from the date of issuance of this circular. Fresh investments by the Clearing Corporation beyond the threshold limit prescribed above are not permitted. B. Liquid assets for the purpose of calculation of Net worth of Clearing Corporation I. Explanation II to Regulation 14 of SECC Regulation 2012 reads as under- For the purposes of this regulation, net worth of a clearing corporation means the aggregate value of its liquid assets calculated in the manner as specified by the Board from time to time . II. The eligible instruments for investment such as fixed deposits, Central Government Securities and liquid schemes of Debt Mutual Funds to the extent permissible, other instrume .....

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..... Stock Exchange to the Core SGF maintained by Clearing Corporation within such time as may be specified by SEBI. b) After such transfer of funds from the Stock Exchange to the Core SGF maintained by the Clearing Corporation, the contribution by the Clearing Member(s), if any, to the Core SGF maintained by the Clearing Corporation, shall be refunded to such clearing member(s). c) The Stock Exchange / Clearing Corporation shall make good the shortfall in the Core SGF at any point in time. IV. The unutilized portion of contribution made by the stock exchange towards the Core SGF, for any segment(s), maintained by the Clearing Corporation, as available with the Clearing Corporation, shall be refunded to the stock exchange, in case the s .....

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