Trade Guarantee Fund (TGF)/ Settlement Guarantee Fund(SGF) – reduced exposure for ten rolling settlement

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e Guarantee Fund (TGF)/ Settlement Guarantee Fund(SGF) - reduced exposure for ten rolling settlement 1. SEBI has specified in circular no.SMDRP/Policy/Cir-16/2001, dated March 09, 2001 the norms for the utilisation of the settlement/trade guarantee funds at the exchanges. 2. The para number 1 of the circular specified that in cases where shortages are in excess of the base minimum capital presc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....apply to atleast ten rolling settlements instead of four settlement as specified in the circular no.SMDRP/Policy/Cir-16/2001, dated March 09, 2001. Thus the para 1 of the said circular shall now read as follows:- "1. In cases where amount shortages in a settlement for a trading member are in excess of the base minimum capital (BMC) prescribed, the trading facility of the member shall be wi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....osure limits shall be restored. However, if a member provides a deposit equivalent to his cumulative fund shortages as the 'funds shortage collateral' in his clearing account the exposure limit may be restored immediately upon meeting the shortage. Such deposit shall be kept with the Exchange for a period of ten rolling settlements and shall be released only if no further funds shortages a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ulations for the implementation of the above decision immediately. bring the provisions of this circular to the notice of the member brokers/clearing members of the Exchange and also to disseminate the same on the website. communicate to SEBI, the status of the implementation of the provisions of this circular in Section II, item no. 13 of the Monthly Development Report for the month of June 2....