To safeguard capital markets from outside risks, the Securities and Exchange Board of India (Sebi) will soon issue a new set of guidelines to govern outsourcing by stock exchanges and other key entities in the marketplace.
The new guidelines will ensure that exchanges, clearing corporations and depositories do not outsource their core and critical activities to third-parties, while they would need to put in place a robust system to monitor outsourced activities on a real-time basis.
The outsourcing policy for stock exchanges and clearing corporations has been discussed by Sebi's Technical Advisory Committee (TAC), while its Depository System Review Committee has also given its recommendations on the need to regulate outsourcing by the depositories, a senior official said.
Consequently, Sebi has decided to issue a consolidated circular on outsourcing for stock exchanges, depositories and clearing corporations, he added.
Major exchanges in the country the BSE and the National Stock Exchange, both of which have their own clearing corporation arms. The two depositories registered with Sebi are National Securities Depository Ltd (NSDL) and Central Depository Services Ltd.
Major exchanges in the country the BSE and the National Stock Exchange, both of which have their own clearing corporation arms. The two depositories registered with Sebi are National Securities Depository Ltd (NSDL) and Central Depository Services Ltd.
It has been felt that there is a need for further focus and strengthening of guidelines in the area of outsourcing by depositories.
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