TMI BlogTimelines for Compliance with various provisions of Securities Laws by Commodity Derivatives ExchangesX X X X Extracts X X X X X X X X Extracts X X X X ..... ion) Act, 1952 ( FCRA ) are deemed to be recognized stock exchanges under the Securities Contracts (Regulation) Act, 1956 ( SCRA ) with effect from September 28, 2015. 2. Section 131 of the Finance Act, 2015 also stipulates that SEBI may provide such deemed exchanges, adequate time to comply with the provisions of SCRA and any regulations, rules, guidelines or like instruments made under SCRA. Accordingly, commodity derivatives exchanges shall comply with the provisions of SCRA, applicable provisions of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012, ( SECC Regulations ) and SEBI circular CIR/MRD/DSA/33/2012 dated December 13, 2012, on procedural norms on recognition, ownership and Governa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y derivative exchanges within one year and by regional commodity derivatives exchanges within three years. However, commodity derivatives exchanges shall immediately put in place adequate surveillance system to monitor positions, prices and volumes etc. so as to ensure market integrity till online real-time surveillance systems are set up and operationalized. 8. Conditions required to be continuously complied with by recognized clearing corporations given in Regulation 7(4) of SECC Regulations, to the extent applicable, shall be complied with by national commodity derivatives exchanges within one year and by regional commodity derivatives exchanges within three years. Regulatory Fee: 9. Commodity derivatives exchanges shall pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 31st March, 2015 shall be submitted by 31st December, 2015. Ownership: 13. National commodity derivatives exchanges shall comply with the shareholdings limits specified under SECC Regulations, 2012 by May 5, 2019. As per clause 5 of SECC Circular, they shall put in place a monitoring mechanism to ensure compliance with the shareholding restrictions specified in SECC Regulations. 14. Shareholdings of existing shareholders of national commodity derivatives exchanges, whose shareholdings were approved by Forward Markets Commission (FMC), shall not require fresh approval from SEBI. However, any fresh holdings will be governed by the provisions of Regulation 19 of SECC Regulations and SECC Circular. 15. Regulations 20 to 22 of SE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar) from other departments in the manner specified in Part C of Schedule II of SECC Regulations within six months. Oversight Committees: 21. Commodity derivative exchanges shall comply with the requirements of Regulation 29 read with Regulation 44D (1) (b) of SECC Regulations within three months. National commodity derivatives exchanges shall constitute an oversight committee for 'Product design', chaired by a Public Interest Director, within three months. Advisory Committee and other Statutory Committees: 22. National commodity derivatives exchanges shall constitute Advisory committees in line with Regulation 30 of SECC Regulations, 2012 and statutory committees as specified in SECC Circular within one year. 23. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring corporation, commodity derivative exchanges shall comply with the provisions of Regulation 39 of SECC Regulations on Fund to guarantee settlement of trades. 30. The provisions of Regulations 41, 42, 43, 44 and 44A of SECC Regulations to a recognized stock exchange shall be applicable to commodity derivatives exchanges. Additionally, the provisions of Regulations 41, 42, 43, 44 and 44A of SECC Regulations in so far as they pertain to a recognized clearing corporation shall be applicable to commodity derivatives exchanges till the functions of clearing and settlement are transferred to a separate clearing corporation 31. Till the functions of clearing and settlement are transferred to a separate clearing corporation, commodity deri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of investors in securities and to promote the development of, and to regulate the securities market and shall come into with immediate effect. 37. This circular is also available on SEBI website at www.sebi.gov.in Yours faithfully, Vishal Nair Deputy General Manager Division of Exchange Administration Commodity Derivatives Market Regulation Department vishaln@sebi.gov.in - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TM ..... X X X X Extracts X X X X X X X X Extracts X X X X
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