Clearing Corporation’s Contribution to ‘Settlement Guarantee Fund’ Must Form Part of Its Net Worth, IFSCA Clarifies
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- Last Updated on 11 March, 2025
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Circular no. IFSCA/CMD-DMIIT/SGF/2024-25/001; Dated: 07.03.2025
Reg. 31 of MII Regulations specifies that the Settlement Guarantee Fund (SGF) of a Clearing Corporation (CC) may have contributions from CC, Stock Exchange and Clearing Members. IFSCA has now clarified that the contribution of a Clearing Corporation to its SGF must be considered part of its net worth. Further, interest on cash contributions to the SGF must accrue to the SGF and pro-rata be attributed to the contributors in proportion to their contributions.
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