Capital markets regulator Sebi on Thursday proposed measures for monitoring the exposure of Clearing Corporations (CCs) to various entities and mitigate the risks.
It has been suggested that any type of exposure of CC should be appropriately monitored and managed. Besides, such exposures should be diversified.
Issuing the proposals, Sebi mentioned about the critical role played by a CC in the securities market ecosystem and that it is exposed to concentration risk.
“… it is important to protect the CC from the risks associated with such entities to which the CC is exposed to and ensure that such exposures of CC are adequately diversified” Sebi said in a consultation paper.
The regulator has comments from the public on the proposals till August 10.
For the purpose of monitoring, Sebi has recommended that CCs should consider several types of exposures.
They include CCs’ own funds invested with banks, Core Settlement Guarantee Fund (SGF) corpus deployed with banks, CCs’ balances
| Subscribe To Our Free Newsletter |
