Applicability of Principles of Financial Market Infrastructures (PFMIs) on Commodity Derivatives Exchanges

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....Market Infrastructures (PFMIs) on Commodity Derivatives Exchanges 1. To promote and sustain an efficient and robust global financial infrastructure, the Committee on Payments and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) published the Principles for financial market infrastructures1 (PFMIs) on April 2012. The PFMIs comprise of 24 principles fo....

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....rations regulated by SEBI are FMIs and would be required to comply with the PFMIs specified by CPSS-IOSCO as applicable to them. 3. Pursuant to Section 131 of the Finance Act, 2015 and Central Government Notification S.O. 2362 (E) dated August 28, 2015, all recognized associations (commodity derivatives exchanges) under the Forward Contracts (Regulation) Act, 1952 ('FCRA') are deemed to be recogn....

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....September 28, 2015) . Till then, the exchanges may continue with the existing arrangement for clearing and settlement of trades." 5. Currently, all Commodity Derivatives Exchanges themselves are clearing and settling trade executed on their platform, i.e. they are acting as Central Counterparties (CCP) in these markets. Therefore, it has been decided that Commodity Derivatives Exchanges (current....

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.... 11(1) of the Securities and Exchange Board of India Act 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 8. Exchanges are also advised to bring the provisions of this circular to the notice of the members of the Exchange and also to disseminate the same on the website. 9. This circular is available on SEBI website....