Sebi asks clearing corporations for detailed monthly reports

Clearing corporations will now have to provide elaborate monthly reports to Sebi with details on settlements, actions taken against trading members as well as information about corporate governance aspects of the corporations themselves.
Sebi's new disclosure requirement for clearing corporations -- which handle settlement of trades in stock market -- would be effective from this month, the market regulator said in a circular today.
In a move that would ensure more transparency in the functioning of clearing corporations, they would now also be required to disclose details about the composition of their governing board and important decisions taken, among others.

Further, clearing corporations will have to provide details about their latest shareholding pattern, networth and status pertaining to implementation of directions issued by Sebi from time to time.
In the circular, the Securities and Exchange Board of India (Sebi) said that clearing corporations would have to submit a monthly report in a prescribed format from this month onwards. The report has to be submitted within ten calendar days from the end of every month.
Under the format, clearing corporations would have to provide information of average daily settlement value as well as the highest settlement value for segments like equity, debt, equity derivatives and currency derivatives.

Settlement shortages for each segment, penalty imposed by it and non-collection of margins, among others, too would need to be disclosed on a monthly basis.

Besides, they have been asked to provide information with regard to defaulter and expelled trading members along with reasons for such actions.
Sebi has also directed them to furnish details about the number of clearing members inspected during a particular month.
In the monthly report, clearing corporations will have to give latest information about corpus maintained in their settlement guarantee funds.