SEBI Establishes Committee To Review Ownership And Economic Structure Of Clearing Corporations

SEBI has established an ad-hoc committee led by Usha Thorat, ex-RBI Deputy Governor, to enhance the resilience and independence of clearing corporations. Stemming from the Gandhi Committee's 2018 report advocating dispersed ownership, the committee aims to address existing issues. \r

Currently, most clearing corporations are subsidiaries of parent exchanges, potentially compromising independence. With derivatives trading expanding, the risk management framework requires reassessment. The committee will evaluate ownership norms, suggesting alternatives to enhance independence and financial sustainability. It will explore broader investor eligibility and revise shareholding caps. \r

Globally, models like DTCC and Euroclear feature diversified shareholding, while others, like LCH and SGX-DC, are exchange subsidiaries. The committee will examine these models to recommend an optimal structure for Indian clearing corporations.