NSE Clearing Corporation Ltd (NCL) has settled a case related to alleged non-compliance with the provisions of the interoperability agreement with markets regulator Sebi, following a payment of Rs 27.13 crore.
This came after the applicant proposed to settle the case through a settlement order "without admitting or denying the findings of fact and conclusions of law".
The Securities and Exchange Board of India (Sebi) conducted an examination to check whether NSE Clearing Corporation Ltd under the interoperability framework was ensuring compliance with the regulatory norms and the provisions of the Interoperability Agreement.
Following the examination, a Show Cause Notice (SCN) was served to NCL in November 2023. The notice alleged that the applicant failed to maintain sufficient Inter Clearing Corporation (Inter-CCP) collateral from Indian Clearing Corporation Ltd (ICCL) and also allegedly failed to ensure compliance with provisions of the Inter-CCP agreement.
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After this, NCL filed an application to settle the violations and paid the settlement amount of Rs 27.13 crore on October 14.
Accordingly, Sebi, through a settlement order on Tuesday, said, "The instant proceedings initiated against the applicant (NCL) for the ...violations, vide show cause notice (SCN) dated November 21, 2023, are disposed of".
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