SEBI norms for acceptable collaterals and exposure of Clearing Corporations

SEBI vide circular dated May 29, 2024 has issued Norms for acceptable collaterals and exposure of Clearing Corporations. The norms provides that acceptable liquid assets for Cash Market includes-

1. Cash Equivalents such as cash, bank fixed deposits, bank guarantees, securities of the Central Government, units of liquid mutual funds (including units of overnight mutual funds) or government securities mutual funds;
2. Other Liquid Assets such as Group I equity shares, units of other mutual fund schemes and corporate bonds. In addition, for Commodity Derivatives Segment, the Other Liquid Assets includes Bullion, units of Gold ETF, Agricultural Commodities, Base Metals & Alloys, and Diamond.