SEBI Revises Settlement Guarantee Fund Norms for Commodity Derivatives Clearing Corporations

The Securities and Exchange Board of India (SEBI) has revised the Settlement Guarantee Fund (SGF) norms for commodity derivatives clearing corporations to ease compliance while maintaining market safety. Clearing corporations must now calculate credit exposure assuming the simultaneous default of at least three clearing members causing the highest exposure, replacing the previous requirement of two members and partial exposure from all defaults. SEBI may also grant case-by-case exemptions considering market conditions and risk management adequacy. These changes aim to facilitate business operations without compromising investor protection.