On 27 July 2025, SRI CSE outlined CCP framework implementation for equity transactions re, short selling.

• CCP framework uses novation process where CSE Clear becomes buyer to every seller and seller to every buyer, eliminating counterparty risk and guaranteeing settlement completion even if one party defaults.
• CSE Clear employs margin methodology including base margin requirements and daily margin requirements to ensure clearing members maintain sufficient collateral to cover potential losses.
• Guarantee fund maintained as financial safeguard with contributions from both CSE Clear and clearing members to cover shortfalls in event of member default.
• Two membership categories: self-clearing members (clear own transactions) and professional clearing members (settle own transactions plus those of trading participants and custodian banks).
• CCP framework enables future introduction of derivatives (futures and options) and complex instruments, plus advanced trading strategies such as short selling.
• In July 2025, SRI CSE issued circulars re Central counterparty execution.