The Reserve Bank on Monday said an entity seeking authorisation or recognition as a Central Counterparty (CCP) should have a minimum networth of Rs 300 crore at the time of submitting its application. CCP means a system provider by way of novation interposes between system participants in the transactions admitted for settlement. CCP becomes the buyer to every seller and the seller to every buyer for the purpose of effecting settlement of their transactions. The central bank on Monday updated its June 2019 norms for Central Counterparties. According to the revised directions, every authorised CCP has to submit an audited networth certificate as at close of financial year from the statutory auditor within six months of the closure of the financial year. Further, the authorised CCP should be a public company limited by shares. "The shares of an authorised CCP shall be held by persons who are users of the authorised CCP. If a person ceases to be a user, the CCP shall ensure that the