Settlement guarantee fund required for each segment to secure completion of trades when members or participants default. Every recognised clearing corporation must establish and maintain a Fund for each segment to guarantee settlement of trades; the Fund is to be utilised to complete settlement when a clearing member or participant defaults. The Fund corpus must be adequate to meet obligations arising from such failures, its sufficiency tested by periodic stress tests as specified by the Board, and its utilisation governed by Board-prescribed norms.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Settlement guarantee fund required for each segment to secure completion of trades when members or participants default.
Every recognised clearing corporation must establish and maintain a Fund for each segment to guarantee settlement of trades; the Fund is to be utilised to complete settlement when a clearing member or participant defaults. The Fund corpus must be adequate to meet obligations arising from such failures, its sufficiency tested by periodic stress tests as specified by the Board, and its utilisation governed by Board-prescribed norms.
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