Sebi Grants Conditional Renewal to MCX-SX Clearing Corporation
PrintListen to this Article
The Securities and Exchange Board of India (Sebi) on Monday granted conditional one-year renewal of recognition to MCX-SX Clearing Corporation, which were among the entities in which Jignesh Shah-led Financial Tech or FTIL was asked by the regulator to divest its stake.
Capital market watchdog Sebi's nod for MCX-SX CCL comes within weeks of renewing the approval for MCX-SX.
In the wake of the payment crisis at group firm National Spot Exchange Ltd (NSEL), Sebi in March had ruled that Jignesh Shah-led Financial Technologies (India) Ltd was not 'fit and proper' to own stakes in any stock exchange or clearing corporation.
Renewing the recognition of MCX-SX CCL, Sebi said it would be valid for one year starting from October 3. The approval is subject to various conditions, including that the clearing house should "submit an action plan for achieving net worth requirements".
"The clearing corporation shall achieve a minimum net worth of Rs. 100 crore within nine months from the date of grant of recognition. The clearing corporation shall also submit quarterly status update in this regard," Sebi said in a release on Monday.
Further, MCX-SX CCL has been asked to take "immediate steps to rectify the deficiencies pointed out in the systems audit" apart from appointing Managing Director and Compliance Officer at the earliest.
According to Sebi, the clearing house should meet shareholding requirements and comply with its direction issued through the order in March this year.
Meanwhile, Sebi has renewed recognition of two other clearing houses - National Securities Clearing Corporation Ltd (NSCCL) and Indian Clearing Corporation Ltd (ICCL) - for a period of one year.
In its March 19 order, Sebi had ruled that FTIL was not 'fit and proper' to own stakes in any stock exchange and directed it to divest existing holdings in MCX-SX, MCX-SX CCL, Delhi Stock Exchange and Vadodara Stock Exchange.
As per Sebi's ruling, which had come against the backdrop of NSEL payment crisis, FTIL was not "a "fit and proper person to acquire or hold any equity share or any instrument that provides for entitlement for equity shares or rights over equity shares at any future date, in a recognised stock exchange or clearing corporation".
This would be applicable for both direct and indirect holdings of FTIL in stock exchanges and clearing corporations.
With regard to Indian Clearing Corporation and National Securities Clearing Corporation, Sebi on Monday said their approvals were subject to conditions including that they took immediate steps to rectify the deficiencies pointed out in their respective systems audit.
Additionally, ICCL has got the approval on condition that it would put in place a "business continuity plan and disaster recovery site as prescribed by Sebi".
Besides, NSCCL has been asked by the regulator "appoint compliance officer exclusively for the clearing corporation" as a condition for renewal.
While NSCCL is a wholly-owned subsidiary of the National Stock Exchange (NSE), ICCL is part of BSE.
Clearing corporations undertake the activity of clearing and settlement of trades in securities or other instruments or products that are dealt with or traded on stock exchanges. (PTI-NDTV)
Category : SEBI | Comments : 0 | Hits : 261
A financial influencer, also known as finfluencer, who was also involved in imparting training related to stock market trading has been asked to part with a little over ?12 crore, which it made unlawfully. The funds are to be credited or deposited by Ravindra Balu Bharti into an interest-bearing escrow account that has been set up in a nationalised bank especially for that purpose. The regulator stated in an order that the escrow account(s) would establish a lien in favour of SEBI and that th...
The Securities and Exchange Board of India (Sebi), the country's market regulator, has announced the launch of an optional same-day (T+0) settlement cycle for a select group of 25 stocks starting March 28, as per a circular published on its website last Thursday. This new initiative, referred to as the beta version, is set to coexist with the traditional next-day (T+1) settlement cycle, where trades are settled within 24 hours of execution. The T+0 settlement option will be available for ...
Capital markets regulator Sebi on Thursday slapped a fine of Rs 48 lakh on eight entities, including promoters of United Polyfab Gujarat Ltd (UPGL), for manipulating the share prices of the company. These entities have to pay the penalty jointly and severally within 45 days, as per an order. The order came after Sebi conducted an investigation of UPGL and trading by certain entities in the scrip of the company, to ascertain whether there was any violation of the provisions of the PFUTP (Pr...
Sebi alerts investors about the growing trend of unregistered entities falsely claiming Sebi registration and offering unrealistic returns. Investors are advised to verify the registration status and consider the inherent risks associated with high-return investments. The Securities and Exchange Board of India (Sebi) has issued a warning to investors, cautioning them against investing money with unregistered entities that promise assured or exceptionally high returns on investments. This advi...
Capital markets regulator Sebi on Thursday issued orders of action against 15 guest experts of the Zee Business channel for unlawful trading. The entities made unlawful gains to the tune of Rs. 7.41 crore from such trades and the profit was shared with guest experts as per prior understanding, Sebi noted. The market regulator also asked the guest experts to pay Rs.7.41 crore. The guest experts appeared on the Zee Business channel from 1 February 2022 and 31 December 2022. "The facts of t...
Comments