In exercise of the powers conferred by sections 4, 8A and 31 of the Securities Contracts

## Report on Securities Contracts Regulation Stock Exchanges and Clearing Corporations Second Amendment Regulations, 2021 **1. Executive Summary:** This report analyzes the Securities Contracts Regulation Stock Exchanges and Clearing Corporations Second Amendment Regulations, 2021 (hereinafter referred to as "the Amendment"), as published in the Gazette of India on August 13, 2021. This Amendment modifies the Securities Contracts Regulation Stock Exchanges and Clearing Corporations Regulations, 2018. The core purpose of the amendment is to revise certain provisions related to stock exchanges and clearing corporations. Key changes include the omission of specific words and subregulations within Regulation 19 of the 2018 Regulations. These changes likely aim to streamline the regulatory framework governing these entities. **2. Introduction:** This report aims to provide an informative overview of the Securities Contracts Regulation Stock Exchanges and Clearing Corporations Second Amendment Regulations, 2021, based solely on the text provided in the official gazette notification. The analysis focuses on understanding the changes introduced by the Amendment and their potential impact. **3. Policy Overview:** * **Original Policy:** The Amendment modifies the Securities Contracts Regulation Stock Exchanges and Clearing Corporations Regulations, 2018. * **Core Objective(s):** The core objective of the Amendment, inferred from the text, is to refine the existing regulatory framework for stock exchanges and clearing corporations, potentially with the goals of simplification and enhanced efficiency. **4. Background and Rationale:** The specific rationale behind *this* Amendment is not explicitly stated. However, the omission of certain terms and subregulations suggests a need to streamline existing regulations, remove redundant provisions, or address unintended consequences within the Securities Contracts Regulation Stock Exchanges and Clearing Corporations Regulations, 2018. It is likely that practical application of the initial regulations revealed areas requiring adjustment. **5. Key Provisions / Changes:** This section focuses on the specific changes introduced by the provided amendment text: * The Amendment targets Regulation 19 of the Securities Contracts Regulation Stock Exchanges and Clearing Corporations Regulations, 2018. * **i. Change:** In the second proviso to subregulation 1, the word "listed" shall be omitted. * **Effect:** This removes the restriction on the type of entities that can be subjected to the clause. * **ii. Change:** Subregulation 2 shall be omitted. * **Effect:** This completely removes subregulation 2 from regulation 19. Without additional context, the precise effect is difficult to determine, but its removal likely impacts the obligations, rights, or procedures associated with that subregulation. * **iii. Change:** In subregulation 4, the words and symbol "subregulation 2 or" shall be omitted. * **Effect:** By removing "subregulation 2 or" from subregulation 4, the scope of subregulation 4 is modified to remove the provision of subregulation 2. * **iv. Change:** Subregulation 6 shall be omitted. * **Effect:** This removes the provision of subregulation 6. **6. Target Audience and Stakeholders:** Based on the text, the primary target audience and stakeholders directly affected by these changes are: * Stock Exchanges * Clearing Corporations * Entities regulated by these regulations. * Securities and Exchange Board of India (SEBI) **7. Implementation Aspects (Inferred):** * **Responsible agency:** Securities and Exchange Board of India (SEBI) is the responsible agency, as they issued the notification and have the authority to enforce these regulations. * **Timelines:** The amendment came into force on the date of its publication in the Official Gazette, i.e., August 13, 2021. * As the text only details what is being removed/changed, and not how these changes should be implemented, it is difficult to determine implementation aspects related specifically to the changes beyond its effective date. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these specific changes are: * **Streamlined Regulations:** The removal of the word "listed", subregulation 2 and subregulation 6 suggests an effort to simplify the regulatory framework and remove potentially unnecessary or redundant provisions. * **Refined Scope of Regulation 19:** The amendments to Regulation 19 likely aim to clarify the scope and application of this regulation. The precise impact of these omissions depends on the specific content of the original subregulations and the practical implications of their removal. **9. Conclusion:** The Securities Contracts Regulation Stock Exchanges and Clearing Corporations Second Amendment Regulations, 2021, represents a targeted revision of the existing regulatory framework governing stock exchanges and clearing corporations. The amendment focuses on refining Regulation 19 of the 2018 Regulations through the omission of specific terms and subregulations. While the specific rationale is not explicitly stated, the changes likely aim to streamline the regulatory landscape and enhance its effectiveness. Further analysis of the original 2018 regulations and their practical application would be required to fully understand the implications of these amendments.

Key Entities Referenced