New Delhi, Capital markets regulator Sebi on Tuesday said it has constituted a committee to review the ownership and economic structure of clearing corporations and suggest measures to ensure that clearing corporations act as flexible, independent and neutral risk managers. Work in.
The ad-hoc committee will be headed by Usha Thorat, former deputy governor of the Reserve Bank of India (RBI).
This decision has been taken in view of the substantial growth of the Indian securities markets in recent years and the importance of clearing corporations as central risk management institutions.
Sebi said in a statement that the committee has been tasked to review the ownership structure as well as the finances of the clearing corporations.
With regard to ownership structure, the Committee will examine the feasibility, and expand the list of eligible investors who are permitted to take shareholding in a clearing corporation and suggest categories of investors who can acquire shareholding in such corporations.Additionally, it will examine the need to change the shareholding limit of different entities in a clearing corporation.
SEBI said that considering the common service, other than exchanges, provided by a clearing corporation in an interoperable environment, the committee may suggest shareholding pattern of the clearing corporation suitable for such environment.
While suggesting alternative ownership structures, the Committee may also examine the shareholding structures of other clearing corporations globally.
"The suggested options should take into account the periodic capital requirements of a clearing corporation for enhancing the settlement guarantee fund. The suggested options should also take into account the need for a clearing corporation to ensure adequate capital/liquidity at market-wide systemic time. Should be kept in mind."Tension," the regulator said.
At present, the current ownership structure of clearing corporations is dominated by the parent exchange and all clearing corporations under the regulatory purview of SEBI are subsidiaries of their parent exchanges.
"The dominance of the parent exchange in the ownership structure makes a clearing corporation conform to the expectations of the parent exchange's shareholders, with the financial statements of the clearing corporation being included in the consolidated financial statements of the parent exchange," the regulator said.
Additionally, the Committee is required to deliberate and suggest options for achieving the optimal financial structure for a clearing corporation, which ensures its financial independence and stability as a strong going concern, as well as Also considers the following aspects.
The ad-hoc committee will be headed by Usha Thorat, former deputy governor of the Reserve Bank of India (RBI).
This decision has been taken in view of the substantial growth of the Indian securities markets in recent years and the importance of clearing corporations as central risk management institutions.
Sebi said in a statement that the committee has been tasked to review the ownership structure as well as the finances of the clearing corporations.
With regard to ownership structure, the Committee will examine the feasibility, and expand the list of eligible investors who are permitted to take shareholding in a clearing corporation and suggest categories of investors who can acquire shareholding in such corporations.Additionally, it will examine the need to change the shareholding limit of different entities in a clearing corporation.
SEBI said that considering the common service, other than exchanges, provided by a clearing corporation in an interoperable environment, the committee may suggest shareholding pattern of the clearing corporation suitable for such environment.
While suggesting alternative ownership structures, the Committee may also examine the shareholding structures of other clearing corporations globally.
"The suggested options should take into account the periodic capital requirements of a clearing corporation for enhancing the settlement guarantee fund. The suggested options should also take into account the need for a clearing corporation to ensure adequate capital/liquidity at market-wide systemic time. Should be kept in mind."Tension," the regulator said.
At present, the current ownership structure of clearing corporations is dominated by the parent exchange and all clearing corporations under the regulatory purview of SEBI are subsidiaries of their parent exchanges.
"The dominance of the parent exchange in the ownership structure makes a clearing corporation conform to the expectations of the parent exchange's shareholders, with the financial statements of the clearing corporation being included in the consolidated financial statements of the parent exchange," the regulator said.
Additionally, the Committee is required to deliberate and suggest options for achieving the optimal financial structure for a clearing corporation, which ensures its financial independence and stability as a strong going concern, as well as Also considers the following aspects.
