{"id":10111,"date":"2025-06-09T17:17:05","date_gmt":"2025-06-09T11:47:05","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=10111"},"modified":"2025-06-09T17:17:37","modified_gmt":"2025-06-09T11:47:37","slug":"sebi-permits-clean-sweep-excess-sgf-funds-shifted-from-currency-to-equity-derivatives","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/sebi-permits-clean-sweep-excess-sgf-funds-shifted-from-currency-to-equity-derivatives\/","title":{"rendered":"SEBI Permits Clean Sweep: SGF Funds Excess Shifted from Currency to Equity Derivatives"},"content":{"rendered":"

SEBI has allowed clearing corporations to make a one-time transfer of excess core Settlement Guarantee Fund (SGF) from the currency segment to the equity derivatives segment.\u201d<\/em><\/p>\n

\u00a0What\u2019s Changing?<\/h2>\n

The Securities and Exchange Board of India (SEBI) has given the green light for clearing corporations\u2014the settlement arms of stock exchanges\u2014to one-time transfer excess funds from the currency derivatives SGF to the equity derivatives SGF. This move means excess safety net funds in the currency segment can support equity derivatives, without needing new cash contributions<\/span> .<\/p>\n

\u00a0Why Now?<\/h3>\n
    \n
  • \n

    Declining currency volumes: Exchange-traded currency volumes dropped sharply, thanks to a restrictive RBI circular from May last year.<\/span><\/p>\n<\/li>\n

  • \n

    As a result, currency SGF balances shrank, while equity derivatives required higher SGF funding due to rising volumes and stricter risk assessments<\/span>.<\/p>\n<\/li>\n<\/ul>\n

    \u00a0Size of the Transfer<\/h3>\n

    Clearing corporations have already acted:<\/span><\/p>\n

      \n
    • \n

      BSE\u2019s ICCL shifted \u20b9444\u202fcrore from currency to equity SGF. Equity SGF now holds \u20b9883.22\u202fcrore, and currency SGF \u20b913.89\u202fcrore<\/span> .<\/p>\n<\/li>\n

    • \n

      NSE Clearing transferred around \u20b9209\u202fcrore. Current balances stand at \u20b911,400\u202fcrore in equity SGF and \u20b9166\u202fcrore in currency SGF<\/span> .<\/p>\n<\/li>\n<\/ul>\n

      \u00a0What It Means<\/h3>\n
        \n
      • \n

        Faster deployment of funds: Equity derivatives now have access to capital without fresh contributions, easing operational burdens.<\/span><\/p>\n<\/li>\n

      • \n

        Better capital efficiency: Currency SGF resources are used smartly\u2014no longer idle\u2014while equity SGF gets a boost.<\/span><\/p>\n<\/li>\n

      • \n

        Preparing for volatility: Equity derivatives, often riskier, now have a stronger safety cushion.<\/span><\/p>\n<\/li>\n<\/ul>\n

        \u00a0Responses & Process<\/h3>\n
          \n
        • \n

          SEBI executed this via a one-time approval process after exchange requests earlier this year.<\/span><\/p>\n<\/li>\n

        • \n

          The move follows SEBI\u2019s risk reforms\u2014allowing such inter-segment transfers to ensure sufficient SGF coverage benefitting both market stability and clearing operations<\/span>.<\/p>\n<\/li>\n<\/ul>\n

          \u00a0Key Takeaways<\/h3>\n
            \n
          • \n

            SEBI\u2019s decision enables efficient fund movement from currency SGF to bolster equity derivatives safety nets.<\/p>\n<\/li>\n

          • \n

            BSE & NSE have already transferred hundreds of crores.<\/p>\n<\/li>\n

          • \n

            This change enhances settlement resilience for equity derivatives, avoids unnecessary capital lock-up, and mirrors SEBI\u2019s broader risk-oriented regulations.<\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

            SEBI has allowed clearing corporations to make a one-time transfer of excess core Settlement Guarantee Fund (SGF) from the currency segment to the equity derivatives segment.\u201d \u00a0What\u2019s Changing? The Securities and Exchange Board of India (SEBI) has given the green light for clearing corporations\u2014the settlement arms of stock exchanges\u2014to one-time transfer excess funds from the […]<\/p>\n","protected":false},"author":2,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1329],"class_list":{"0":"post-10111","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1329,"user_id":2,"is_guest":0,"slug":"snehagandhi","display_name":"Sneha Gandhi","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/10\/Sneha-Gandhi.jpeg","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/10\/Sneha-Gandhi.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/10111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=10111"}],"version-history":[{"count":2,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/10111\/revisions"}],"predecessor-version":[{"id":10117,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/10111\/revisions\/10117"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/10115"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=10111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=10111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=10111"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=10111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}