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Sebi tweaks SOP in case of defaults by trading, clearing members

Sebi tweaks SOP in case of defaults by trading, clearing members

Capital markets regulator Sebi on Friday tweaked the standard operating procedure specifying steps to be taken by stock exchanges, clearing corporations and depositories for dealing with possible defaults by trading or clearing members.

The measures are aimed at protecting the interest of non-defaulting clients of trading members (TMs) or clearing members (CMs) in the likely event of default.
The regulator, in consultation with the Market Infrastructure Institutions, has decided to modify the framework in order to provide equitable distribution of funds amongst investors, according to a circular.

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