Limited purpose clearing corporation rules govern clearing of repo transactions and impose shareholding, fund, and governance constraints. The regulations establish a regulatory framework for recognised limited purpose clearing corporation entities to clear and settle repo and reverse repo transactions in debt securities, define key terms, allow compliance via outsourcing with recognised clearing corporations under Board conditions, prescribe shareholding limits and foreign investment caps with a five-year founder lock-in, require contributions and replenishment obligations to the Settlement Guarantee Fund, restrict profit distribution for five years directing profits to the Fund, limit activities without Board approval, and mandate an arbitration mechanism for dispute settlement.
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.
Limited purpose clearing corporation rules govern clearing of repo transactions and impose shareholding, fund, and governance constraints.
The regulations establish a regulatory framework for recognised limited purpose clearing corporation entities to clear and settle repo and reverse repo transactions in debt securities, define key terms, allow compliance via outsourcing with recognised clearing corporations under Board conditions, prescribe shareholding limits and foreign investment caps with a five-year founder lock-in, require contributions and replenishment obligations to the Settlement Guarantee Fund, restrict profit distribution for five years directing profits to the Fund, limit activities without Board approval, and mandate an arbitration mechanism for dispute settlement.
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