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

Banking & Finance | Dated: 13 Nov 2024

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.

🎯 Key Highlights:

  • - 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.

💡 Other Important Facts:

  • (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.

📚 Test Your Knowledge:

Recently, the RBI has set a net worth requirement of how many crores for entities seeking CCP authorisation?

Correct Answer: 300 Crore

🚀 Quick Recap: