The Securities and Exchange Board of India (SEBI) on March 16, 2026, issued a circular revising provisions related to the Core Settlement Guarantee Fund (SGF) for clearing corporations operating in the commodity derivatives segment. The changes amend the framework contained in the SEBI Master Circular for Commodity Derivatives Segment dated August 4, 2023.
Under the revised framework, clearing corporations must now calculate credit exposure assuming simultaneous default of at least three clearing members (and their associates) causing the highest credit exposure while conducting standardized stress testing for the SGF. Earlier provisions required assessment based on default of at least two clearing members and additional exposure parameters. The modification was introduced following stakeholder representations, recommendations from the Risk Management Review Committee, and public consultation to facilitate ease of doing business.
The circular also introduces a provision allowing SEBI to grant exemptions or relaxations from SGF requirements on a case-to-case basis, considering prevailing market conditions, adequacy of risk management frameworks, and investor protection objectives. The revised provisions have come into force with immediate effect.
[Notification No. HO/47/16/14(1)2026-MRD-POD1/I/7115/2026]
