Sebi comes out with framework for utilisation of security deposits with clearing corp

Capital markets watchdog Sebi Monday came out with a new framework for utilisation of financial security deposits available with clearing corporations, warehouse development and regulatory authority in order to rationalise such deposits.

At present, on the same goods, security deposits are required to be maintained with both WDRA (warehouse development and regulatory authority) and clearing corporations, putting additional financial burden on warehouse operators.

In order to rationalise financial security deposit (FSD) and, after consultation with WDRA and clearing corporations, Sebi in a circular said clearing corporations having commodity derivatives segment would need to adhere to the new norms laid by the regulator for utilisation of such deposits.

The new framework will be effective from 30 days.

Under the framework, the clearing corporations after the accreditation will immediately provide the details of WDRA registered warehouses accredited by them with full details of ...