TMI BlogOutsourcing of activities, Business Continuity Plan (BCP) and Disaster Recovery (DR) and Cyber Security and Cyber Resilience framework - Limited Purpose Clearing Corporation (LPCC)X X X X Extracts X X X X X X X X Extracts X X X X ..... cular SEBI/HO/MRD/DP/CIR/P/2017/101 dated September 13, 2017. 2. Further, guidelines for Business Continuity Plan (BCP) and Disaster Recovery (DR) have been prescribed by SEBI vide Circular SEBI/HO/MRD/DMS1/CIR/P/2019/43 dated March 26, 2019 and the framework for Cyber Security and Cyber Resilience has been prescribed vide Circular CIR/MRD/DP/13/2015 dated July 06, 2015 and Circular CIR/MRD/CSC/148/2018 dated December 07, 2018. 3. SEBI Board in its meeting held on September 29, 2020 permitted setting up of a Limited Purpose Clearing Corporation (LPCC) for clearing and settling repo transactions in debt securities and accordingly Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Stock Exchanges and Clearing Corporations are also advised to disseminate the provisions of this circular on their website. 10. In respect of the LPCC, the provisions of Circular SEBI/HO/MRD/DP/CIR/P/2017/101 dated September 13, 2017 , Circular CIR/MRD/DP/13/2015 dated July 06, 2015 , Circular CIR/MRD/CSC/148/2018 dated December 07, 2018 and Circular SEBI/HO/MRD/DMS1/CIR/P/2019/43 dated March 26, 2019 , stand modified to the extent as mentioned above. 11. This circular is available on SEBI website at www.sebi.gov.in under the categories Legal Framework Circulars . 12. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 to protect th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r into comprehensive outsourcing agreements with the existing CCs. a. Selection Process : The LPCC shall enter into outsourcing agreements with at least two existing CCs (Service Providers) so that there is complete redundancy and business continuity in place. The parameters for selection of Service Providers shall include at least the following parameters: i. Proven technology and capacity to handle volume ii. Experience of staff iii. Compliance with cyber security requirements iv. Speed of implementation with ability to adapt the existing segments / modules in place v. Ability to undertake software enhancement and customization as per LPCC requirements vi. Ongoing support b. Fees Charges: In determining the ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice disputes, between the LPCC and the SPs, neither there can be any service disruption, nor any market disruption, during the pendency of the said inter-se service disputes. Further, contracts should provide sufficient financial disincentive against market disruption and both the LPCC and the SP shall remain committed to provide uninterrupted service to the market participants, irrespective of their inter-se disputes pending for resolution before the competent authorities. viii. There shall be no dilution in access of the regulator to the LPCC and its SPs in monitoring and inspecting the regulatory compliance by the LPCC and the SPs. For any violation of SEBI regulations the LPCC shall remain liable. 5. The LPCC shall handle the fu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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