Sebi issues SoP to deal with possible defaults by trading, clearing members

Sebi on Wednesday came out with a set of standard operating procedures for stock exchanges, clearing corporations and depositories to deal with possible defaults by trading or clearing members.

The framework, which will come into force from August 1, is aimed at protecting the interest of non-defaulting clients of trading members or clearing members in the likely event of default by trading member or clearing member.

The Standard Operating Procedure (SoP) enumerates actions that need to taken when a stock exchange or clearing corporation is of the view that a trading or a clearing member is likely to default in repayment of