SEBI vide Circular dated December 21, 2020 has issued new norms to govern Core Settlement Guarantee Fund (SGF), Default Waterfall and Stress Test for Limited Purpose Clearing Corporations (LPCC). The Limited Purpose Clearing Corporations (LPCC) are directed to make the following details available on its website:
- Policy on composition and contributions to be made to the Core SGF of LPCC;
- Investment policy for Core SGF of LPCC;
- Default waterfall for segment along with the quantum of resources available in each layer of default waterfall;