NSE Clearing Settles Interoperability Agreement Case with Sebi

NSE Clearing Corporation Ltd resolved a case involving non-compliance with an interoperability agreement, settling with the Securities and Exchange Board of India by paying Rs 27.13 crore. This settlement was reached without admitting fault, following allegations of insufficient collateral maintenance and non-compliance with Inter-CCP agreements.

NSE Clearing Corporation Ltd (NCL) recently concluded a significant settlement with the Securities and Exchange Board of India (Sebi) by paying Rs 27.13 crore to resolve claims of failing to comply with interoperability agreement provisions. This development comes amid allegations concerning inadequate collateral maintenance and non-compliance under the Inter-CCP framework.

The case unraveled after Sebi's extensive examination of the interoperability framework compliance at NCL. The probe aimed to verify if NCL was upholding regulatory standards and adhering to the provisions of their agreement. As a result, a Show Cause Notice (SCN) was issued to NCL in November 2023, highlighting potential breaches.

NCL chose a settlement route, leading to a compensation payment executed on October 14. This path allowed NCL to settle the charges without admitting or denying the alleged violations. Sebi confirmed the closure of the proceedings, indicating the applicant's compliance following the financial settlement.

(With inputs from agencies.)