SEBI issues guidelines for ‘Orderly Winding Down’ & services of a Clearing Corporation

Circular no. SEBI/HO/MRD-PoD-3/P/CIR/2022/173, Dated 16.12.2022

The SEBI has issued guidelines for winding down operations and services offered by clearing corporations (CCs). These entities will be allowed to wind down operations and exit as a strategic or business decision. The policy framework shall contain a Standard Operating Procedure (SOP), under which a notice or intimation regarding the winding down of critical operations and services shall be issued by the CC as and when the scenarios get triggered, with prior approval of SEBI.

Further, the SOP shall also contain details of key employees or staff members, along with their roles and obligations, etc., who shall be retained and responsible for the development, review, and ongoing monitoring etc. of the critical operations and services, once the process of the orderly winding down of critical operations and services is initiated.

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