SCHEDULE - II (PART - E) - Bye-laws of Clearing Corporation, and procedure for submitting amendments to Articles/Rules/Bye- laws, etc., of a recognised stock exchange / recognized clearing corporation for approval of the Board - Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018

PART - E Bye-laws of Clearing Corporation, and procedure for submitting amendments to Articles/Rules/Bye- laws 1 [****], etc., of a recognised stock exchange / recognized clearing corporation for approval of the Board [See regulation 42] (1) A clearing corporation shall in terms of applicable provisions of section 9 of the SCRA and regulation 42 of these Regulations make bye-laws, providing inter alia for the following:- (a) the timings for pay-in and pay-out of funds and securities; (b) rules for clearing and settlement; (c) risk management mechanism; (d) process of netting, novation and guarantee for settlement of trades; (e) norms for contribution into and utilisation of the Fund in terms of regulation 39 of these Regulations ; (f) rights and obligations of the clearing members vis-a-vis the clearing corporation, other clearing members, the trading members and clients of such trading members; (g) criteria for admission and regulation of clearing members; (h) default handling mechanism; (i) Committees. (j) any other matter as may be specified by the Board. (2) Procedure for submitting amendments to Articles/Rules/Bye- laws 2 [****], etc., for approval of the Board:- The amendments to the Memorandum, Articles of Association, Rules, bye-laws 3 [****] (as may be applicable) etc., of the stock exchange/clearing corporation, in terms of the Securities Contracts (Regulation) Act, 1956, the Securities Contracts (Regulation) Rules, 1957, other applicable provisions in this regard, shall be submitted for approval of the Board, subsequent to the following. a. The proposed amendment/s shall first be approved by the governing board of the stock exchange/clearing corporation, followed by shareholders approval (wherever applicable), then shall be submitted to the Board for approval and then published in the Gazette of India (wherever applicable) and the respective State. b. The proposal shall be accompanied by the minutes of the governing board, the shareholder's resolution and public criticism. However, in case the amendments are pursuant to Regulations, circular etc, issued by the Board, the same shall not be subject to shareholder's approval. ******** Notes 1. Omitted vide NOTIFICATION No. SEBI /LAD- NRO /GN/2019/21 dated 04-06-2019 before it was read as /Regulations 2. Omitted vide NOTIFICATION No. SEBI /LAD- NRO /GN/2019/21 dated 04-06-2019 before it was read as /Regulations 3. Omitted vide NOTIFICATION No. SEBI /LAD- NRO /GN/2019/21 dated 04-06-2019 before it was read as , Regulations