NSE’s clearing house calls for guarantee fund

Our Bureau Mumbai | Updated on November 28, 2014

The NSE’s clearing corporation, NSCCL, has called for contribution from clearing members for its core settlement guarantee fund (SGF) across three segments — equity, equity derivatives and currency derivatives.

Clearing members in the capital market segment have to bring in ₹1 lakh as minimum contribution by December 1, towards core SGF. The minimum contribution to core SGF for the equity F&O segment is ₹10lakh and for currency derivatives ₹2 lakh.

This follows the SEBI directive on August 27 to set up a core SGF.

SEBI had mandated that no exposure would be given against core SGF besides aligning stress testing practices according to global standards and harmonising default waterfalls across clearing corporations.

In addition, a dynamic contribution is also to be brought in.

NSCCL would also release excess contribution to core SGF by members after every review.

Published on November 28, 2014

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