The Securities and Exchange Board of India on 16th November 2022, has published the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Second Amendment) Regulations, 2022 through which it has notified a new regulation 44A dealing with orderly winding down.
As per regulation 44A, every clearing corporation shall devise and maintain a framework for orderly winding down of its critical operations and services covering both voluntary and involuntary scenarios.
Every clearing corporation shall ensure that the framework provides for:-
a. the timely and orderly settlement or cessation or transfer of position(s), and/ or;
b. the transfer of the collateral(s) or deposit(s) or margin(s) or any other asset(s) of the members to another recognized clearing corporation that would take over the operations of the clearing corporation, and/or;
c. such other related matter.