In a circular issued on March 16, the regulator said clearing corporations will now be required to calculate credit exposure assuming the simultaneous default of at least three clearing members and their associates that generate the highest credit exposure under stress-testing scenarios.
Previously, the framework required clearing corporations to consider the default of at least two clearing members and also cover 50% of the credit exposure arising from the simultaneous default of all clearing members when determining the adequacy of the settlement guarantee fund.
The change follows representations from market participants, recommendations of the Risk Management Review Committee (RMRC), and feedback received during public consultation, SEBI said.
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Additionally, the regulator has inserted a new provision allowing it to grant exemptions or relaxations from strict enforcement of SGF norms in the commodity derivatives segment on a case-by-case basis. Such decisions will take into account prevailing market conditions, the adequacy of risk management frameworks, and the broader objective of investor protection.
The revised rules come into force with immediate effect, the regulator said.The settlement guarantee fund acts as a financial backstop to ensure trades are honoured in the event of member defaults, thereby safeguarding the integrity of clearing and settlement in derivatives markets.
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In another development, the capital markets regulator declared that it has allowed mutual funds to undertake intraday borrowings under specified conditions to manage short-term liquidity mismatches.
In a circular, Sebi said the new framework will come into effect from April 1, 2026, IANS reported.
According to the regulator, mutual funds, particularly liquid and overnight schemes, often face an intraday mismatch between redemption payouts to investors and the receipt of maturity proceeds from instruments such as TREPS and reverse repo transactions.
To address this issue, Sebi has permitted mutual funds to access intraday borrowing facilities from financial institutions such as banks to bridge the temporary gap between inflows and outflows of funds.
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