The Securities and Exchange Board of India on 11th August 2022, has published the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2022 to further amend the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018.
As per the amendment, regulation 22F which deals with dispute resolution mechanism has been substituted as follows:
The recognized limited purpose clearing corporation shall put in place a dispute resolution mechanism, for settlement of disputes or claims arising out of transactions cleared and settled by it, in the manner as specified by the Board in consultation with the Reserve Bank of India.
Further, under regulation 22C, the governing board of a recognized limited purpose clearing corporation shall include:
- nominee directors;
- independent directors;
- managing director; and
- such other directors as may be specified by the Reserve Bank of India or the Board from time to time.
The representative of the issuers of debt securities may be appointed on the governing board of the recognized limited purpose clearing corporation on a rotational basis and such a director shall be deemed to be a nominee director.
The amendment has notified a new regulation, 22G which deals with General Provisions.
The limited purpose clearing corporation shall ensure compliance with the provisions of these regulations as well as directions issued by the Reserve Bank of India. In cases of different compliance requirements as specified under the provisions of these regulations and the directions issued by the Reserve Bank of India, the compliance requirements shall be made applicable to the limited purpose clearing corporation after consultation with the Reserve Bank of India.
