The Securities and Exchange Board of India (Sebi) has advised the National Stock Exchange (NSE) to increase the core settlement guarantee fund (SGF) of National Clearing Ltd to Rs 10,500 crore for the equity derivatives segment within six months. The NSE and its subsidiary NSE Clearing received a letter dated May 3 from the market regulator regarding the issue, according to the notes to NSE’s financial statements.
SGF is maintained by clearing houses to guarantee the settlement of trades executed on the stock exchange. In case a clearing member fails to honour settlement commitments, the SGF is used to fund the obligations of that member without affecting the normal settlement process. As of June 30, NCL had Rs 9,726 crore in the core SGF with additional contribution of Rs 587 crore from the NSE.
Also Read
An analyst tracking the exchange said the latest Sebi advisory would lead to a further increase in SGF contribution from the NSE as the earlier directive was to increase the total core SGF corpus to Rs 10,000 crore. As per regulations, the NSE has to contribute at least 25% of the minimum required corpus to the core SGF while NSE Clearing has to contribute a minimum of 50% and the rest has to come from clearing members. Meanwhile, the exchange’s consolidated net profit rose 39.2% on a year-on-year basis to Rs 2,566.88 crore in Q1FY25. The growth in the bottom line was slower compared to a 51% jump in its revenue to Rs 4,509.70 crore for the April-June period.
New F&O norms likely by October SEBI’s new F&O rules to hit retail-focused exchanges and brokers hard: Here’s What Jefferies Says Govt sounds sovereign funds for offloading its stake in Vi Salt over spice for investors
The cash markets recorded an average daily traded volumes of Rs 1.23 trillion, while the equity futures and equity options (premium value) reached an average daily traded volume of Rs 2.09 trillion and Rs 71,957 crore, respectively, during the quarter.India’s largest exchange had operating earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 3,106 crore during the quarter, after accounting for the additional contribution to core SGF.
Also Read
The NSE had a market share of 93% in cash market in April-June, compared to 94% a year ago. Meanwhile, in the equity options segment, its market share based on premium value fell from 99.95% a year ago to 90.95%. In its earnings presentation, NSE said it contributed Rs 14,003 crore to the exchequer during the quarter. Of this, securities and commodity transaction tax were Rs 12,054 crore and stamp duty charges stood at Rs 1,018 crore.
