Utilisation of the Settlement Guarantee Fund (SGF)

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....the Settlement Guarantee Fund (SGF) SEBI, vide its circular no. SMD/POLICY/SGF/CIR-13/97 dated June 09, 1997 regarding guidelines for setting up Settlement Guarantee Fund(SGF) at Stock Exchanges, had prescribed that in the event of a failure of member/s to honour their settlement commitment, the SGF will fulfill the commitment only after declaring the member/s as defaulter/s and such member/s wou....

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....deals as provided in the Bye-laws and Regulations, the relevant authority may utilise the Settlement Guarantee Fund and other monies to the extent necessary to fulfill the obligation under such terms and conditions as the relevant authority may specify from time to time." The following would be the norms for utilisation from SGF : Settlement Guarantee Fund maintained by the Exchange may be ....

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....ulative Funds Shortage Exposure limit allowed (% of current exposure limit) 20% of BMC - 50% of BMC 80% 50% of BMC - 100% of BMC 60% This reduced gross exposure level is maintained for a period of four settlement. If the cumulative funds shortages for the next 4 settlements is less than 20% of BMC, the exposure limits shall be restored. The exposure limit may be restored if a member provides....