Sebi eases settlement guarantee norms for commodity derivatives clearing corporations

The regulatory changes aim to improve liquidity and risk management within the financial sector, particularly for commodity derivatives and mutual funds. This comes amidst ongoing regulatory scrutiny and efforts to strengthen market infrastructure.

• •Sebi revised Core Settlement Guarantee Fund norms for commodity clearing corporations, requiring stress scenarios of three member defaults.
• •The regulator allowed mutual funds to undertake intraday borrowing to manage temporary liquidity mismatches.
• •Risk flag: Potential for increased risk-taking by clearing corporations if stress tests are not robust enough.
• •Risk flag: Broader market sentiment and global economic factors could still influence financial sector performance.