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Informist, Wednesday, Jun. 18, 2025

 

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--SEBI Pandey: Not feasible to separate clearing corp from parent bourse
--CONTEXT: SEBI chief Pandey's comments at press conference post board meet
--SEBI Pandey: Set up panel to explore unbundling of clearing corp charges
--SEBI Narayan:Want clearing corps to be self sufficient in charges received
--CONTEXT:SEBI member Narayan's comments at press conference post board meet

 

By Rajesh Gajra

 

NEW DELHI/MUMBAI – The Securities and Exchange Board of India has put the matter of separation of a clearing corporation from the parent stock exchange on the backburner. In a press conference following the board meeting Wednesday, SEBI chairman Tuhin Kanta Pandey said the market regulator does not find it feasible or practical to go ahead with the move, as the objective of governance and independence can be achieved by other means.

 

One such mean, according to the SEBI chief, is by way of unbundling of charges that are payable to a clearing corporation. SEBI is looking to see "how the charges are done in a manner where the clearing corporation is having the right kind of fees in order for it to be self-sustaining," Pandey said. To explore the clearing corporation charges unbundling and other means, Pandey said the market regulator has set up a working group. This group was set up a few days back.

 

SEBI issued a consultation paper in November 2024 with the main proposal of diversifying ownership structure of clearing corporations, currently practically wholly owned by stock exchanges, in a manner that will lead to the shareholders of an exchange directly owning shares of the parent and the parent exchange not having any shareholding in them. However, Pandey said in Wednesday's press conference that there will not be any structural change in the clearing corporation ownership issue.

 

Pandey said there are different models used by stock exchanges and clearing corporations worldwide and India is following one of them. "The crux of the matter is that clearing corporation should be independently funded either through clearing members or if there is a ownership of the exchanges then there should be a guarantee that money would always be flowing in order" for the clearing corporation to provide for the counterparty risks it takes on, Pandey said.

 

SEBI wholetime member Ananth Narayan said in the same press conference that the market regulator wants the clearing corporation to be self-sufficient in terms of what it collects as revenue. "Currently, it (clearing corporation) has to depend sometimes on the (parent) exchange for settlement guarantee fund infusion, for capital investments, and so on and so forth," Narayan said.

 

The wholetime member said that SEBI is keen on knowing exactly what it is that a clearing corporation needs to collect out of unbundled charges for its own self-sustenance. The group formed to look into the issues is likely to submit its final recommendations in a few months, SEBI officials said.   End

 

With inputs from Vaishali Tyagi and Anjana Antony

Edited by Deepshikha Bhardwaj

 

 

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