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SEBI defers F&O margin rule implementation to May 2, 2022

Postponement has been done citing requests from various stakeholders.

February 25, 2022 / 07:21 AM IST
Representative Image: Reuters

Representative Image: Reuters

Stock market regulator SEBI (Securities and Exchange Board of India) on February 24 issued an updated circular wherein it has extended the deadline to implement the new systems of compliance pertaining to segregation and monitoring of collateral at client level.

As per the original notice issued on July 20, 2021 the new compliance framework was supposed to come in force from December 01, 2021 but it had to be postponed due to the fiasco related to Karvy Stockbroking where clients’ shares had been pledged illegally as collateral against loan.

On November 23, 2021 SEBI had set the date of February 28, 2022 for implementation to happen but the regulator has decided to postpone it once again citing requests from various stakeholders for the postponement of the same. The new date for implementation has now been fixed as May 02, 2022.

In its original notice issued in July, the regulator had asked the clearing corporations to specify a reporting mechanism that will provide visibility of client-wise collateral, covering both cash and non-cash, at both the broker and clearing corporation level. It had also specified that mechanism should capture disaggregated information on both the segment and asset type of each client collateral in the following manner: