Review of Coverage of Settlement Guarantee Fund for Commodity Derivatives Segment

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....s Segment Sir / Madam, Sub: Review of Coverage of Settlement Guarantee Fund for Commodity Derivatives Segment 1. SEBI Master Circular SEBI/HO/MRD/MRD-PoD-1/P/CIR/2023/136 for Commodity Derivatives Segment dated Aug 04, 2023, inter alia, prescribes norms related to Core Settlement Guarantee Fund (SGF). The extant provisions pertaining to coverage of SGF, as provided in paragraph 22 of Anne....

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....provisions contained in Part C (with respect to Coverage of SGF) of paragraph 22 ("Standardized Stress Testing for Commodity Derivatives") of Annexure O of SEBI Master Circular for Commodity Derivatives Segment dated Aug 04, 2023, as under: "Part C. Coverage For each of the scenarios in Part A, Clearing Corporations shall calculate the credit exposure due to simultaneous default ....

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....e prevailing market conditions, the adequacy of applicable risk management framework and keeping in view the overall objective of investor protection." 4. The circular shall come into force with immediate effect. 5. This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992, read with Regulation 51 of the Securities ....