Utilisation of the Settlement Guarantee Fund (SGF)

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..... Managing Directors, All Stock Exchanges Dear Sir, Sub: Utilisation of the Settlement Guarantee Fund (SGF) SEBI, vide its circular no. SMD/POLICY/SGF/CIR-13/97 dated June 09, 1997 regarding guidelines for setting up Settlement Guarantee Fund(SGF) at Stock Exchanges, had prescribed that in the event of a failure of member/s to honour their settlement commitment .....

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..... ls to meet obligations to the Clearing House of the Exchange arising out of clearing and settlement operations of such deals as provided in the Bye-laws and Regulations, the relevant authority may utilise the Settlement Guarantee Fund and other monies to the extent necessary to fulfill the obligation under such terms and conditions as the relevant authority may specify from time to time. .....

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..... n recovery of the complete shortages, the member is permitted to trade with a reduced gross exposure as mentioned in the table below : Cumulative Funds Shortage Exposure limit allowed (% of current exposure limit) 20% of BMC 50% of BMC 80% 50% of BMC .....

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..... t the 'funds shortage collateral' by way of cash, FDR or Bank Guarantee. 2. The outstanding amount would carry a penal interest of not less than 0.09% per day. Yours faithfully, P. K. BINDLISH Dy. General Manager Secondary Markets, Depository, Research and Publication Department email: pkb@sebi.gov.in - Circul .....

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