Library / Gas Trading and Settlement Regulations 2023
Gas Trading and Settlement Regulations 2023

Page 18 of 31
B  160
39.—(1)  The Authority may, by an order, give such directives as may
be necessary where it is satisfied that any of these circumstances exist or is
likely to occur in the market —
(a)  abnormal increase or decrease in prices of gas ;
(b)  sudden or unreasonable fluctuations or unwarranted changes in the
prices of gas, and high volatility ; or
(c)  sudden high transaction volumes on a gas exchange.
(2)  The Authority may,without prejudice to subregulation (1), by order in
writing —
(a) suspend transaction activities for a cooling off period,in case of
increased volatility ;
(b) suspend transaction of any specific contract on gas exchange ;
(c) increase the margin for contracts transacted on gas exchange, in a
case of high volatility of prices or high speculation ;
(d) allow trade only for trade settlements ;
(e)  limit open position of one or a section of participants on gas exchange ;
(f )  limit market wide position on gas exchange ; or
(g)  require hiving off of the clearing and settlement function from the
gas exchange to a clearing house.
40.  The Authority may demand for any information, documents or records
from a gas exchange or clearing house.
41.—(1) The Authority may at any time undertake inspection, conduct
inquiries and audit of any gas exchange or clearing house, any associate or
affiliate of such exchange or clearing house.
(2) Where an inspection in these Regulations is undertaken by the
Authority, the gas exchange or clearing house or its affiliate and every manager,
director, managing director, chairman or officer and other employee of the gas
exchange, clearing house, affiliate or associate shall comply with the Authority.
42.  Without prejudice to the exercise of its powers under the Act, the
Authority may, on receipt of any information or during pendency of any
inspection, inquiry or investigation or on completion, in the interest of promoting
competitive gas markets, issue such directive as it deems fit.
43.—(1) The Authority may, on being satisfied that, any of the
circumstances specified in regulations 38 and 39 exists, at any time, direct in
writing, any gas exchange or clearing house or member of gas exchange or
clearing house or trading licensee (“the person being investigated”) to furnish
in writing any information or explanation, including without limitation, relating
to any of their transaction, activity, business practice or business dealing.
Other
circumstances
requiring
intervention
Power to
demand for
information
Power of
inspection
Directive
by the
Authority
Power to
investigate
certain
matters