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  • CSD-2.1 CSD-2.1 Clearing House Function

    • CSD-2.1.1

      A licensed clearing house shall act as the central counterparty of the clearing members for clearing and settlement of transactions and for delivering securities to and receiving securities from clearing members and making payment to and receiving payment from clearing members in connection with any transaction.

    • Settlement Bank(s)

      • CSD-2.1.2

        The licensed clearing house may undertake the settlement function directly, or from time-to-time appoint settlement bank(s) to act as the settlement bank(s) for the settlement of the transactions.

        Amended: April 2016

      • CSD-2.1.3

        The appointed settlement bank(s) shall act as agent(s) of the licensed clearing house for the collection and payment for funds towards settlement obligations, margins and other dues.

        Amended: April 2016

    • Clearing Houses to Have Designated Accounts with Settlement Bank(s)

      • CSD-2.1.4

        Every clearing member of the licensed clearing house shall maintain a designated bank account with a settlement bank.

        Amended: April 2016

      • CSD-2.1.5

        The clearing members shall operate the designated bank accounts only for the purpose of payment of their monetary obligations to the licensed clearing house and/or the licensed exchange and receipt of monetary entitlements from the licensed clearing house or licensed exchange.

        Amended: April 2016

    • Settlement Bank to Act on Instructions of the Clearing House

      • CSD-2.1.6

        The licensed clearing house shall instruct the settlement banks to debit or credit the account maintained by the licensed clearing house and also the designated bank accounts of the clearing members. The settlement banks shall act on such instructions, which shall be deemed to be confirmed orders by the clearing members to debit and/or credit funds, as may be specified in the instructions from time-to-time.

        Amended: July 2016
        Amended: April 2016

      • CSD-2.1.7

        [This Paragraph was merged with CSD-2.1.6 in July 2016.]

        Amended: July 2016
        Amended: April 2016

      • CSD-2.1.8

        Clearing members shall authorise settlement banks to access their designated bank accounts for debiting and/or crediting their accounts electronically, on the instructions of the licensed exchange or licensed clearing house.

        Amended: April 2016

    • Settlement Banks to Inform Status

      • CSD-2.1.9

        If there is any shortage in meeting monetary obligations by a clearing member relating to debits into a designated bank account, the settlement bank shall forthwith report such instances of shortage to the officer of the licensed clearing house and licensed exchange designated for the purpose in a mutually agreed mode of communication.

        Amended: April 2016