Revised norms for clearing corps on liquid assets

New Delhi: Capital markets regulator Sebi has tweaked guidelines for accepting liquid assets as collateral by clearing corporations (CCs) and put in place prudential norms for exposure of such entities in a bid to strengthen the risk management framework.

Clearing corporations accept liquid assets with applicable haircuts to meet the requirements for initial margins and mark to market losses among others. In its circular, the regulator said that units of growth plan of overnight mutual fund schemes would be accepted as cash equivalent by CCs with a haircut of 5 percent and for other plans of overnight mutual fund schemes, the hair cut of 10 percent would continue to be applicable.

Beta version of calculator on settlement amount

Capital markets regulator Sebi on Thursday launched a beta version of the settlement calculator to simplify the process of arriving at the indicative settlement amount, and provide more transparency in the system. This settlement calculator contains fields that the applicant can identify in terms of the violations. It also enables the applicant to select appropriate options with respect to their past regulatory track record.