21.
| (1) Where the Central Bank is of the opinion that-
| | (i) a clearing house for a designated clearing and settlement system engages in or is about to engage in any act, omission or course of conduct; | | |
| | (ii) a participant is engaging in or is about to engage in any act, omission, or course of conduct with respect to its participation in the designated clearing and settlement system; or | | |
| | (iii) the designated clearing and settlement system operates or is about to be operated in a manner, | | |
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| (2) Where the Central Bank is of opinion in terms of subsection (1) that the risk to the financial system is being inadequately controlled, and it appears to the Central Bank that -
| | (i) the clearing house fails to comply with a directive that has been issued to it in terms of subsection (1); | | |
| | (ii) the designated clearing and settlement system does not have a clearing house located in Sri Lanka ; or | | |
| | (iii) in the opinion of the Central Bank -
| | | (a) the risk to the financial system is being inadequately controlled due to an act, omission, or course of conduct of a participant with respect to its participation in the designated clearing and settlement system; and |
| (b) the act, omission, or course of conduct does not comply with any agreement, rule, procedure, guideline or other documentation relating to the designated clearing and settlement system, |
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| (3) A directive under this section may be made in respect of any matter that is directly related to participation in the designated clearing and settlement system. A directive under this section may not be made in respect of-
| | (i) the capital adequacy of a participant;
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(ii) the management of its investments;
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| | (iii) its corporate governance; | | |
| | (iv) its relations with customers who are not themselves participants in the designated clearing and settlement system; or | | |
| | (v) its ownership structure. | | |
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| (4) A directive may require that the payment obligations that arises from clearing within the designated clearing and settlement system shall be settled through adjustments to the account or accounts of one or more of the participants at the Central Bank. |
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| (5) A directive, if it so provides, shall be applicable to a designated clearing and settlement system that is established by or under any written law. |
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| (6) A directive issued under this section shall be communicated to the person to whom it is directed and shall be published in the Gazette. A directive so issued shall come into operation on the date it is issued. |
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| (7) A directive shall be binding on the person to whom it is issued. |
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Sri Lanka Consolidated Acts