NISM Series 7 Securities Operations & Risk Management | NISM VII Course | NISM SORM Course - Settlement Guarantee Fund | Clearing corporations | Central Counter party

Core Settlement Guarantee Fund Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018, inter-alia, state the following: Fund to guarantee settlement of trades 1) Every recognized clearing corporation shall establish and maintain a Fund by whatever name called, for each segment, to guarantee the settlement of trades executed in respective segment of a recognized stock exchange. (2) In the event of a clearing member failing to honour his settlement obligations, the Fund shall be utilized to complete the settlement. (3) The corpus of the Fund shall be adequate to meet the settlement obligations arising on account of failure of clearing member(s). (4) The sufficiency of the corpus of the Fund shall be tested by way of periodic stress tests, in the manner specified by SEBI. (5) The utilization of the Fund shall be in accordance with the norms specified by SEBI. Further, SEBI has directed clearing corporation to have a fund called Core SGF (Settlement Guarantee Fund) for each segment of each Recognized Stock Exchange (SE) to guarantee the settlement of trades executed in respective segment of the Stock Exchange. In the event of a clearing member (member) failing to honour settlement commitments, the Core SGF shall be used to fulfill the obligations of that member and complete the settlement without affecting the normal settlement process. NISM Mock Tests - https://modelexam.in/nism-exams/nism-mock-test.html NISM Study Material - https://modelexam.in/nism-exams/nism-study-material.html NISM 7 SORM Exam Preparation - https://modelexam.in/nism-exams/nism-series-7-sorm.html #settlementguarantee #clearingcorporation #financemarket #capitalmarket #depository #nism #sebi #financialeducation #sharemarket #stockmarket #stockmarketforbeginners #stockmarketindia #securities #securitiesmarket #securitiesoperations