42. The recognised clearing corporation providing clearing and settlement services for commodity derivatives which result in physical settlement shall ensure financial guarantee for settlement of trades including good delivery. Explanation: For the purpose of this regulation, "good delivery" shall mean the delivery of goods that is in proper form to transfer title and is of the quality and quantity as per contract specifications of the concerned exchange. =============... ... ...

41. (1) The payment and settlement in respect of a transaction in a recognised stock exchange and recognised clearing corporation shall be determined in accordance with the netting or gross procedure as specified in the bye-laws of such recognised stock exchange and recognised clearing corporation, with the prior approval of the Authority. (2) Payment and settlement in respect of a transaction between parties referred to in sub- regulation (1), effected under the bye-laws of a recognised ... ... ...

40. (1) A recognised stock exchange and recognised clearing corporation shall, with the prior approval of the Authority, make bye-laws for the regulation of contracts and clearing and settlement, as the case may be. (2) The bye-laws of a recognised stock exchange or a recognised clearing corporation shall not be amended without prior approval of the Authority. (3) No memorandum of association, articles of association or any other constitution document, in so far as they relate to matte... ... ...

39. (1) A recognised stock exchange shall maintain and preserve the books of account and documents referred in rule 14 of the rules, and such other records as may be specified by the Authority from time to time, in electronic retrieval form for a minimum period of twenty years. (2) A recognised clearing corporation shall maintain and preserve the following books of account and documents in electronic retrieval form for a minimum period of twenty years namely:- (a) Minute books of... ... ...

38. (1) A recognised clearing corporation shall lay down a policy framework for ensuring that there is no discrimination while rendering clearing and settlement services in settlement of trades executed on shareholder stock exchange from those executed on non-shareholder stock exchange. (2) The framework shall be made available on the website of the clearing corporation and shall provide the basis on which access to clearing and settlement services of the clearing corporation has been pro... ... ...

37. (1) The utilization of profits and investments by a recognised stock exchange or a recognised clearing corporation shall be in accordance with the norms specified by the Authority. (2) The recognised stock exchange or recognised clearing corporation shall not carry on any activity involving deployment of funds without prior approval of the Authority: Provided that prior approval of the Authority shall not be required in case of treasury investments if such investments are as per th... ... ...

36. A recognised stock exchange and a recognised clearing corporation shall have in place Site to maintain data and transaction integrity in the manner as may be specified by the Authority from time to time. =============... ... ...

35. (1) A recognised stock exchange providing co-location facilities shall supervise and monitor such facilities and shall ensure that the integrity, security and privacy of data and trading systems are maintained, at all times. (2) A recognised stock exchange shall ensure that equal and fair access is provided to the participants through such co-location facilities. (3) A recognised stock exchange providing co-location facilities shall publish quarterly reports on their websites on la... ... ...

34. A recognised stock exchange shall have a procedure for any halt of trading in market or individual scrip in response to volatility, or in anticipation of major company-specific announcements for promoting fair and orderly trading. =============... ... ...

33. (1) A recognised stock exchange and a recognised clearing corporation shall have a sound risk management system and infrastructure for comprehensively managing risks. (2) A recognised stock exchange shall evolve a detailed framework for the applicable position limits for each product to be traded. (3) A recognised clearing corporation shall evolve a robust risk management framework and shall comply with the following: (a) The risk management framework shall be in line with... ... ...

32. (1) The trading hours for all product categories shall be as decided by the recognised stock exchanges, based on cost-benefit analysis, but shall not exceed 23 hours and 30 minutes in a day and settlement shall be done at least twice a day. (2) A recognised stock exchange and a recognised clearing corporation shall ensure that the risk management system and infrastructure are commensurate to the trading hours at all times. =============... ... ...

31. (1) A recognised clearing corporation shall establish and maintain a to guarantee the settlement of trades executed on a stock exchange. (2) The fund shall have a corpus equivalent to at least the minimum required corpus as arrived at from the monthly stress test value or USD 1 million, whichever is higher. (3) In the event of a recognised clearing member failing to honour its settlement obligations, the fund shall be utilized to complete such settlement. (4) The corpus of the ... ... ...

30. A recognised stock exchange shall establish such as may be specified by the Authority. =============... ... ...

29. A recognised stock exchange or a recognised clearing corporation, as the case may be, shall seek prior approval of the Authority before introducing or offering settlement services to any new category of securities. =============... ... ...

CHAPTER IV GENERAL OBLIGATIONS OF A RECOGNISED STOCK EXCHANGE AND A RECOGNISED CLEARING CORPORATION 28. (1) A recognised stock exchange shall use the services of a recognised clearing corporation for clearing and settlement of its trades in accordance with an agreement between them. (2) A recognised stock exchange shall extend its arbitration mechanism for settlement of disputes or claims arising out of clearing and settlement of trades executed on such stock exchange. ==========... ... ...

27. A recognised market infrastructure institution shall adopt an appropriate policy to segregate its regulatory departments from other departments. =============... ... ...

26. A recognised market infrastructure institution shall constitute such committees as may be specified by the Authority from time to time. =============... ... ...

25. (1) Every director and key management personnel of a recognised market infrastructure institution shall abide by such Code of Ethics and Code of Conduct as may be specified by the Authority. (2) The Authority may, for any failure by the directors or key management personnel to abide by these regulations or Code of Ethics and conduct or in case of any conflict of interest, either upon a reference from the recognised market infrastructure institution or suo motu, take appropriate action... ... ...

CHAPTER III GOVERNANCE OF MARKET INFRASTRUCTURE INSTITUTIONS 24. (1) A recognised market infrastructure institution shall adopt the broader principles of governance prescribed under the Principles for Financial Market Infrastructures by Committee on Payments and Market Infrastructures (CPMI) and International Organization of Securities Commissions (IOSCO) and such other governance norms as may be specified by the Authority, from time to time. (2) The governing board of a recognised ... ... ...

23. (1) A recognised market infrastructure institution shall ensure that all its directors, key management personnel and shareholders are fit and proper persons, at all times: Provided that, in respect of a listed recognised market infrastructure institution, the onus to ensure fit and proper person for shareholders shall be on: (a) the acquirer in respect of shareholding less than 5 per cent. in the recognised market infrastructure institution; and (b) the acquirer and ... ... ...