Sebi to revise clearing corp norms; mulls interoperability

In a major revamp of rules governing clearing corporations, Sebi today decided to hold public consultations on a new set of norms to enable interoperability of clearing corporations. Currently, different stock exchanges have their own clearing corporations, which handle settlement of trades on the respective bourses. At a board meeting here today, Sebi decided to seek public comments on recommendations made by an expert committee on Clearing Corporations chaired by eminent banker K V Kamath.

"The board recommended that public comments may be sought on the recommendations of the Committee on Clearing Corporations," Sebi said. The committee has submitted recommendations on the issues including interoperability between clearing corporations, and investment by clearing corporations among others. The Clearing Corporations Committee had also examined and reviewed the existing regulation of transfer of profits every year by the bourses to CCs and the committee is also given task of defining 'the liquid assets' of CCs for the purpose of calculation of net worth among others.

The recommendations of the committee in this regard were there should be a review of transfer of 25 per cent profits every year by recognised stock exchanges to recognised clearing corporations and review of transfer of profits every year by Depositories to their investor protection fund. Major exchanges in the country include BSE and National Stock Exchange, both of which have their own clearing corporation arms. The two depositories registered with the Securities and Exchange Board of India are NSDL and CDSL.