Settlement guarantee fund required for each segment, used to complete trades on clearing member default and tested periodically. Recognised clearing corporations must establish and maintain a Fund for each segment to guarantee settlement of trades; existing funds of stock exchanges shall be transferred to the clearing corporation and until transfer may be used only for Board- and byelaw specified settlement obligations. The Fund will be utilised to complete settlement on clearing member default, its corpus must be adequate for such failures, sufficiency is subject to periodic stress tests as specified by the Board, and contribution and utilisation follow Board 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, used to complete trades on clearing member default and tested periodically.
Recognised clearing corporations must establish and maintain a Fund for each segment to guarantee settlement of trades; existing funds of stock exchanges shall be transferred to the clearing corporation and until transfer may be used only for Board- and byelaw specified settlement obligations. The Fund will be utilised to complete settlement on clearing member default, its corpus must be adequate for such failures, sufficiency is subject to periodic stress tests as specified by the Board, and contribution and utilisation follow Board norms.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
