Contribution to Settlement Guarantee Fund (SGF)

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1 | P a g e CIRCULAR IFSCA/CMD-DMIIT/SGF/2024-25/001 March 07, 2025 To, All the Clearing Corporations in the International Financial Services Centres (IFSC) All the Stock Exchanges in the International Financial Services Centres (IFSC) All the Clearing Members in the International Financial Services Centres (IFSC) Dear Sir/Madam, Sub: Contribution to Settlement Guarantee Fund (SGF) 1. IFSCA has recently notified the amendments to the IFSCA (Market Infrastructure Institutions) Regulations, 2021 (hereinafter referred to as MII Regulations). 2. As per Regulation 15 of the MII Regulations (as amended up to November 01, 2024), the net worth for the Clearing Corporation has been defined as under: ‘net worth of a clearing corporation’ means the aggregate value of its liquid assets calculated in the manner as specified by the Authority from time to time. Further, it has been stated in the MII Regulations that Cash and bank balance, fixed deposits, Government Securities and other instruments as may be specified by the Authority from time to time shall be considered as ‘liquid assets’ for the purpose of calculation of net worth of a clearing corporation. 3. Regulation 31 of the MII Regulations specifies that the SGF of a Clearing Corporation may have contribution from the Clearing Corporation, Stock Exchange and the Clearing Members. 4. In this regard, it is hereby clarified that the contribution of a Clearing Corporation to its SGF shall be considered as part of its net worth. Additionally, the interest on cash contribution to the SGF shall also accrue to the SGF and pro-rata be attributed to the contributors in proportion to their contribution. 2 | P a g e This circular is issued in exercise of powers conferred by Section 12 of the International Financial Services Centres Authority Act, 2019, read with Regulation 72 of the MII Regulations. A copy of this circular is available on the website of the International Financial Services Centres Authority at www.ifsca.gov.in. Yours faithfully, Praveen Kamat General Manager Division of Market Infrastructure Institutions and Technology Capital Markets Department email: praveen.kamat@ifsca.gov.in Tel: +91-79-61809820