RBI Sets Rs 300 Crore Net Worth Requirement for Entities Seeking CCP Authorisation.

Banking & Finance

The RBI announced that any entity seeking authorisation or recognition as a CCP should have a net worth of at least Rs 300 crore at the time of submitting its application.


      - RBI has updated its regulations from June 2019 regarding capital requirements and governance frameworks for CCPs.

      - The revised regulations apply to both domestic CCPs authorised by RBI and foreign CCPs recognised under the PSS Act, 2007.

      - CCP is a system provider that uses novation to interpose between system participants in transactions for settlement. CCP becomes the buyer to every seller and the seller to every buyer to settle transactions.

Main Points:-   (i) Every authorised CCP must submit an audited net worth certificate from the statutory auditor within 6 months of the financial year’s closure.

      (ii) The authorised CCP must be a public company limited by shares, with shares held by users of its services. If a person ceases to be a user, the CCP must ensure their shares are divested.


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