SEBI has issued a consultation paper inviting public comments on proposed modifications to the Master Circular for Stock Exchanges and Clearing Corporations dated 30 December 2024 and the Master Circular for the Commodity Derivatives Segment dated 4 August 2023 to simplify regulatory requirements, remove redundant provisions, discontinue duplication, promote ease of doing business and reduce the compliance burden on clearing corporations. The proposals include revising norms relating to pay-in shortfalls, assigning specified compliance responsibilities to clearing corporations, discontinuing certain reporting requirements, rationalising periodic filings, removing obsolete provisions, standardising disclosures, updating settlement and risk management provisions, requiring clearing corporations to formulate standard operating procedures for unscheduled holidays, modifying provisions relating to T+1 settlement, direct payout of securities, transfer of funds, margin verification, delivery centres and depository participant reporting, and shifting certain stock broker-related provisions to the Master Circular for Stock Brokers. The consultation paper also states that the combined guidelines will incorporate applicable provisions up to 30 June 2026 and seeks public comments on the proposed changes.
Securities and Exchange Board of India
CONSULTATION PAPER ON SETTLEMENT AND RISK MANAGEMENT- FOR PUBLIC COMMENTS
Measures for ease of doing business for MIIs- ” Modifications to Master Circular for Stock Exchanges and Clearing Corporations, Master Circular for Commodity Derivatives Segment on ‘Settlement’ and ‘Risk Management’
SEBI- Aug 06, 2026 | Reports : Reports for Public Comments
Click here to provide your comments
THE BACKGROUND AND OBJECTIVE
1.1 This consultation paper is the fifth and last part in the series of consultation papers issued for review of the regulatory norms pertaining to Stock Exchanges and Clearing Corporations. In terms of the extant modalities for policy formulation, SEBI, inter-alia, prior to issuing a circular under the Acts or regulations generally undertakes public consultation.
1.2 Accordingly, the objective of this consultation paper is to seek comments/views/suggestions from public on the modifications to-
1.2.1 Chapter 3 (Settlement), Chapter 4 (Comprehensive Risk Management for cash market and Debt segment) and Clearing Corporation/Risk management related provisions covered in Chapters 1, 5 and 6 of Master Circular for Stock Exchanges and Clearing Corporations(MSECC) dated December 30, 2024,
1.2.2 Chapter 9(Risk Management), Chapter 11(Delivery and Settlement) and Chapter 12(Warehousing norms for Agriculture and Agri-processed commodities and Non-Agricultural Goods) of Master Circular for Commodity Derivatives Segment(MCCD) dated August 04, 2023,
through, inter-alia, simplification of regulatory requirements, removal of redundant provisions, discontinuation of duplication, in order to promote ease of doing business and reduce the compliance burden on clearing corporations.
1.3 The approach to review broadly entails the below activities-
1.3.1 Chapter-wise review of Master Circular for Stock Exchanges and Clearing Corporations dated December 30, 2024;
1.3.2 Entity-wise review of Master Circular, in terms of having a Master Circular for Exchanges and separate Master Circular for Clearing Corporations;
Accordingly, the consultation paper is for combined guidelines for Clearing Corporations on the aforementioned Chapters mentioned at para 1.2 and shall also incorporate all the applicable provisions till the 30th of June, 2026 in respect of Clearing Corporations.
2. SUMMARY OF CHANGES SUGGESTED
The current provisions, changes proposed and rationale for the changes are briefly mentioned as under:
PUBLIC COMMENTS
3.1 Kindly provide your comments for the below items along with supporting rationale:
3.1.1 Whether provisions covered under Master Circular for Stock Exchanges and Clearing Corporations dated December 30, 2024 and the Master Circular for Commodity Derivatives dated August 04, 2023 be merged?
3.1.2 Whether provisions related to Stock exchanges and Clearing Corporations covered in Master Circulars dated December 30, 2024 and August 04, 2023 be separated?
3.1.3 Wherever the above two is proposed, whether any risks or issues are envisaged? Safeguards to protect against possible risks?
3.1.4 Whether there is any discrepancy w.r.t merged provisions being made applicable to a segment/MII, they are not intended to?
3.1.5 Whether provisions from MCCD pertaining to Risk management and settlement are adequately covered in merged provisions in Circular for Clearing Corporation?
3.1.6 Whether any other circular/communication needs to be incorporated in the Master Circular for Clearing Corporation?
3.1.7 Specific comments on the detailed provisions in this consultation paper.
3.2 Public comments are also invited on the draft circular and draft circular in track change annexed to this consultation paper as Annexure A and Annexure B respectively. The comments/suggestions should be submitted latest by August 27, 2026, through the online web-based form which can be accessed using the following link:
https://www.sebi.gov.in/sebiweb/publiccommentv2/PublicCommentAction.do ?doPublicComments=yes
The instructions to submit comments on the consultation paper are as under:.
3.2.1 Before initiating the process, please read the instructions given on top left of the web form as “Instructions”.
3.2.2 Select the consultation paper you want to comment upon from the dropdown under the tab – “Consultation Paper” after entering the requisite information in the form.
3.2.3 All fields in the form are mandatory.
3.2.4 Email ID and phone number cannot be used more than once for providing comments on a particular consultation paper.
3.2.5 If you represent any organization other than the types mentioned under dropdown in “Organization Type”, please select “Others” and mention the type, which suits you best. Similarly, if you do not represent any organization, you may select “Others” and mention “Not Applicable” in the text box. vi. There will be a dropdown of Proposals in the form. Please select the proposals one- by-one and for each of the proposal, please record your level of agreement with the selected proposal. Please note that submission of agreement level is mandatory.
3.2.6 If you want to provide your comments for the selected proposal, please select
3.2.7 “Yes” from the dropdown under “Do you want to comment on the proposal” and use the text boxes provided for the same.
3.2.8 After recording your response to the proposal, click on “Submit” button. System will save your response to the selected proposal and prompt
you to record your response for the next proposal. Please follow this procedure for all the proposals given in the dropdown.
3.2.9 If you do not want to react on any proposal, please select that proposal from the dropdown and click on “Skip this proposal” and move to the next proposal.
3.2.10 After recording your response to all the proposals, you may see your draft response to all of proposals by clicking on “Check your response before submitting” just before submitting response to the last proposal in the dropdown. A pdf copy of the response can also be downloaded from the link given in right bottom of the web page.
3.2.11 The final comments shall be submitted only after recording your response on all of the proposals in the consultation paper.
3.3 In case of any technical issue in submitting your comment through the web based public comments form, you may contact the following through email with the subject: ” Modifications to Master Circular for Stock Exchanges and Master Circular for Commodity Derivatives Segment- on ‘Settlement’ and ‘Risk Management’
Lamber Singh, GM (lambers@sebi.gov.in)
Pratik Kumar, AGM (pratikk@sebi.gov.in)
Sharaffkhana V S Vamsi Kiran, AM (vamsikiransvs@sebi.gov.in)
Encl.: Annexure A, Annexure B, and Annexure C
Issued on: August 06, 2026
