CIRCULAR
SEBI/HO/MRD/TPD-1/P/CIR/2024/138 October 14, 2024
To
All Stock Exchanges
All Clearing Corporations
All Depositories
Dear Sir/ Madam,
Subject: Corrigendum to Circular on Ease of Doing Business in the context of
Standard Operating Procedure for payment of “Financial Disincentives” by Market
Infrastructure Institutions (MIIs) as a result of Technical Glitch
1. Vide Circular SEBI/HO/MRD/TPD-1/P/CIR/2024/124 dated September 20, 2024,
amendments with regard to Standard Operating Procedure for payment of “Financial
Disincentives” by Market Infrastructure Institutions (MIIs) as a result of Technical
Glitch have been issued. The abovementioned Circular is applicable to all the MIIs
including the Commodity Derivatives Exchanges/Clearing Corporations. However, the
aforesaid amendment does not explicitly give reference to relevant sections of the
Master Circular for Commodity Derivatives Segment dated August 04, 2023.
2. Accordingly, references to relevant sections of Master Circular for Commodity
Derivatives Segment dated August 04, 2023, to be read with the following paragraphs
of above-mentioned SEBI Circular dated September 20, 2024, are as under.
2.1. Para 1 and 4 of SEBI Circular dated September 20, 2024, shall include reference
to para 16.8 of Master Circular for Commodity Derivatives Segment dated August
04, 2023.
2.2. Para 4.1 of SEBI Circular dated September 20, 2024, shall include para 16.8.1 of
Master Circular for Commodity Derivatives Segment dated August 04, 2023.
2.3. Para 4.2 of SEBI Circular dated September 20, 2024, shall include Clauses 3,4,5
of Annexure-ZF to the Master Circular for Commodity Derivatives Segment dated
August 04, 2023.
2.4. Para 4.3 of SEBI Circular dated September 20, 2024, shall include Clause 6 of
Annexure-ZF to the Master Circular for Commodity Derivatives Segment dated
August 04, 2023.
2.5. Para 4.4 of SEBI Circular dated September 20, 2024, shall include Clauses 7 and
8 of Annexure-ZF to the Master Circular for Commodity Derivatives Segment
dated August 04, 2023.
3. Further, in line with Para 4.5 of SEBI Circular dated September 20, 2024, following
text shall be inserted after Clause 2.4 of Annexure-ZE of the Master Circular for
Commodity Derivatives Segment dated August 04, 2023.
2.5 SEBI on identification of the Technical Glitch resulting into Financial
Disincentive to the MIIs, or upon receipt of the information of any such instance
shall provide an opportunity to the concerned MIIs to make their submissions in
respect of the facts of the case.
2.6 MIIs shall carry out internal examination pertaining to occurrence of technical
glitches to ascertain individual accountability and take appropriate action including
suitable recording and reckoning in the performance appraisal of those individuals.
SEBI would retain the right to initiate enforcement action against the individuals at
the MII, if there is sufficient ground to do so.
4. This Circular is being issued in exercise of powers conferred under Section 11 (1) of
the Securities and Exchange Board of India Act, 1992 to protect the interests of
investors in securities and to promote the development of, and to regulate the
securities market.
5. This Circular is available on SEBI website at www.sebi.gov.in under the categories
“Legal Framework” and “Circulars”.
Yours faithfully,
Ansuman Dev Pradhan
General Manager
Technology, Processing Re-Engineering and Data Analytics
Market Regulation Department
+91-22-26449622
Email: ansumanp@sebi.gov.in