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

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B  172
SECOND SCHEDULE
Regulation 36
BYE-LAWS AND RULES OF GAS EXCHANGES
1.  A memorandum of association, articles of association or any other
constitutional document, in so far as they relate to matters specified in these
Regulations, bye-laws and rules of a gas exchange, shall not be amended
except with prior approval of the Authority.
2.  The gas exchange shall function according to its bye-laws and market
rules formulated by the gas exchange and as approved by the Authority.
3.  Such market rules amongst other requirements would cover —
(a)  membership and client registration process (including KYC), types
of membership, membership fees and application process ;
(b)  price discovery and matching mechanism ;
(c)  qualifications for membership, exclusion, suspension and expulsion ;
(d)  rights and liabilities for each category of members ;
(e)  opening and closing of transaction hours, trading days, matching of
transactions and bidding process ;
(f )  delivery, delivery obligations, scheduling, imbalance management,
quantity, quality, measurements, gas specifications, taxes and like other
particulars;
(g)  clearing and settlement of trades ;
(h)  type of contracts ;
(i)  conditions of service, technical facilities, liability of exchange,
confidentiality and like other details ;
(j)  margin requirements ;
(k)  procedure for handling a default relating to —
(i)  buyer default remedy mechanism,
(ii)  seller default remedy mechanism, and
(iii) mechanism to compensate transporter for system imbalances
caused due to buyer or seller default ; and
(l)  any other provision as may be directed by the Authority.
4. Bye-laws amongst other requirements would cover —
(a)  market surveillance and investigation procedures ;
(b)  clearing and settlement procedure ;
(c)  risk management framework ;
(d)  levy of exchange transaction charge ;
(e)  member service charge ;
(f )  maintenance of records and accounts ;
(g)  preparation of annual accounts and audit ;
(h)  arbitration, dispute resolution and conciliation ;