Stock Exchanges and Clearing Corporations

What this module covers

Stock exchanges, clearing corporations and depositories are collectively “Market Infrastructure Institutions” (MIIs) regulated under the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 — commonly called the SECC Regulations — last amended 22 November 2025. The SECC Regulations impose a distinct governance model on MIIs because they run systemically important market infrastructure: at least 51% public shareholding, a majority of independent, SEBI-vetted directors on the governing board, strict fit-and-proper checks on key management personnel, and a statutory Investor Protection Fund and core Settlement Guarantee Fund funded and ring-fenced to absorb clearing-member defaults. Ownership is capped (no single non-institutional shareholder beyond prescribed limits) to prevent any one entity from controlling exchange or clearing infrastructure.

The 8 control pages below map this framework to operational checkpoints — confirming legal/registration status and governance composition (P-01, P-02) through onboarding and due diligence of members (P-03), custody and segregation of client funds/securities held through the clearing corporation (P-04), pricing/fee/conflict controls (P-05), disclosure and reporting to SEBI and the public (P-06), investor grievance and default-fund mechanics (P-07), and inspection/enforcement readiness (P-08) — covering surveillance, clearing, settlement and system-resilience obligations as one connected compliance workflow.

Control pages

Official sources

• SEBI — SECC Regulations, 2018 (last amended 22 November 2025)

Current law status: in force as of this review date; last amended 22 November 2025. Verify for further amendments before relying on this page for a live compliance decision.