SEBI clarifies issues regarding collecting and reporting of margins by Trading Members and Clearing Members in cash segment

Sep 16, 2020 | by Avantis RegTech Legal Research Team


Secretarial Compliance

The Securities and Exchange Board of India (SEBI) on September 15, 2020 has issued a circular for collecting and reporting of margins by trading member (TM) and Clearing Member (CM) in cash segment. A circular for the guidelines for the same was issued by SEBI on July 31, 2020. Further, the board has clarified the issues relating to the levy of penalty for the non-collection of the “other margins” on or before T+2 days from the clients by TM/CM. 

The following clarification has been given

• If both the funds and securities have been paid within T+2 days, then there shall be no application of penalty or short funds arising thereof. 

• If the early pay in has been collected by the clearing corporation then all the short arising margins would have been deemed to be collected. 

• If the clients are not paying the margins within T+2 days and the TM/CM fails to collect the margins within T+2 days, then the penalty shall be applicable.

[Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/173]


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