SEBI mulls streamlining rules for stock exchanges, clearing corporations
Markets regulator SEBI on Thursday proposed streamlining rules for stock exchanges and clearing corporations, including a separate Master Circular for clearing corporations, to eliminate duplication and clearly segregate applicable provisions.
At present, provisions relating to stock exchanges and clearing corporations are contained across the Master Circular for Stock Exchanges and Clearing Corporations (MSECC) issued in December 2024, and the Master Circular for Commodity Derivatives (MCCD) issued in August 2023.
In its consultation paper, SEBI has proposed merging provisions pertaining to clearing corporations contained in the two master circulars into a separate Master Circular for Clearing Corporations.
Similarly, certain requirements primarily concerning exchanges have been proposed to be shifted to the relevant chapters of the Master Circular for Exchanges.
Among other changes, SEBI has proposed extending certain website disclosure requirements for clearing corporations to all segments. These include disclosures relating to the policy on composition and contributions to the Core Settlement Guarantee Fund (SGF), quarterly break-up of contributions, investment policy for the Core SGF and the default waterfall for each segment.
The regulator has also proposed exempting clearing corporations registered as depository participants (DPs) from submitting periodic DP-related reports and filings to depositories.
SEBI noted that clearing corporations retain DP registrations mainly for establishing connectivity with depositories for clearing and settlement activities and do not undertake retail client transactions like regular DPs.
Further, several provisions concerning stock brokers, including mode of payment and delivery, block mechanism for early pay-in, pay-in validation, client collateral and pledge/re-pledge of securities, are proposed to be removed from the MSECC since these are already covered under the Master Circular for Stock Brokers dated June 17, 2025.
The regulator has also proposed deleting or relocating provisions relating to client code modification, order-level checks, dynamic price bands and base minimum capital as these are already covered elsewhere in the regulatory framework.
Requirements relating to calculation of mean impact cost and risk reduction mode, among others, are proposed to be moved to the relevant trading and exchange-traded derivatives chapters of the Master Circular for Exchanges.
Further, provisions concerning clearing corporations that are currently contained in the commodity derivatives and stock exchange master circulars, including those dealing with risk management, delivery and settlement of derivative contracts, have been proposed to be consolidated into the new Master Circular for Clearing Corporations.
SEBI said the move would help standardise norms, rationalise periodic filings, remove obsolete requirements and simplify the regulatory framework.
The regulator has sought public comments on whether provisions under the two existing master circulars should be merged and whether those relating to stock exchanges and clearing corporations should be separated.
The Securities and Exchange Board of India (SEBI) has sought public comments on the proposals till August 27.
