SEBI Plans Clearing Interoperability for Buybacks, Tender Offers and OFS by November-End

SEBI Chairperson Tuhin Kanta Pandey said the regulator is working to bring tender offers, share buybacks and offers for sale (OFS) within the framework, which already covers most exchange-traded products, as per news reports. 

The proposed expansion could remove the need for brokers to maintain separate clearing arrangements for these transactions, with SEBI targeting implementation by the end of November 2026. 

Separate Clearing Arrangements Add to Costs 

The excluded transactions currently require brokers to maintain separate arrangements with BSE Clearing Corporation and NSE Clearing, depending on where trades are executed. This adds to their operating expenses and ties up capital. 

Apart from margins, brokers need to maintain deposits and net worth, while also paying annual fees for each segment in which they settle client trades. 

Industry Bodies Flag Long-Standing Issue 

The Brokers’ Industry Standards Forum had raised the issue with SEBI, pointing to the additional burden created by parallel clearing arrangements. 

Framework Could Free Up Broker Capital 

Introduced in June 2019, interoperability allows clearing corporations across exchanges to work together. It supports cross-exchange netting of eligible positions and helps brokers make better use of their collateral instead of maintaining separate pools. 

Extending the framework to the remaining transaction categories is intended to reduce these duplicated arrangements. Pandey said the changes would improve capital efficiency and lower compliance costs while preserving settlement safety. 

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Conclusion 

SEBI is targeting the end of November 2026 for implementation, although the operational details will depend on the framework finalised. The proposed expansion would extend existing clearing benefits to transactions that currently remain outside its scope. 

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