NATIONAL SECURITIES CLEARING CORPORATION LIMITED
CAPITAL MARKET CLEARING & SETTLEMENT
Download Ref No: NSE/CMPT/6144
Ref No: NSCC/CM/C&S/377 May 16, 2005
All trading Members,
PCM and Custodians
Sub: Cash Market - Risk Management Framework
further to our circular No. NSCC/CM/C&S/337 (Circular download No. NSE/CMPT/6122) dated
may please note that the provisions of the above circular shall be effective
for all the open positions as on and from
For National Securities Clearing Corporation Limited
Market Regulation Department
The Executive Directors / Managing Director/Administrators
of All Stock Exchanges
Dear Sir / Madam,
Sub: Comprehensive Risk Management Framework for the Cash Market
Please refer to SEBI Circular No.MRD/DoP/SE/Cir-07/2005
2. In terms of the said circular, the
Stock Exchanges were required to put in place the necessary systems to ensure
the operationalization of the comprehensive risk
management framework with effect from
3. In view of the representations received from some of the Stock Exchanges requesting to make the provisions of the circular applicable, preferably, from Monday (instead of during the middle of the week), it has been decided that the provisions of the said Circular shall now be implemented with effect from Monday, the 30th May, 2005, instead of Wednesday, the 18th May, 2005.
4. Accordingly, the Stock Exchanges are advised to note that from the date of the scheduled implementation, no stock exchange shall permit trading activity unless the exchange is in a position to implement the revised risk management framework as specified in the aforesaid SEBI Circular.
5. The Stock Exchanges are advised to
a. bring the provisions of this circular to the notice of the member brokers/clearing members of the Exchange and also to disseminate the same on the website.
b. communicate to SEBI, the status of the implementation of the provisions of this circular in Section II, item no. 13 of the Monthly Development Report for the month of May 2005.
6. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.