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Inclusion of Equity Exchange Traded Funds as list of eligible securities under Margin Trading Facility - SEBI - SEBI/HO/MRD/MRD-PoD-3/P/CIR/2022/166

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..... nvestment product with various advantages such as transparency, diversification, lower cost, etc., it has been decided to allow units of Equity Exchange Traded Funds (Equity ETFs) categorized as Group-I security as per provisions of SEBI Circular No.MRD/DoP/SE/Cir-07/2005 dated February 23, 2005 as an eligible security for MTF as well as an eligible collateral under MTF. 3. Accordingly, provisions under paragraphs 3, 4, 5, 6, 14 and 18 of SEBI Circular No. CIR/MRD/DP/54/2017 dated June 13, 2017 have been modified as under: 3.1. Securities Eligible for Margin Trading Paragraph-3 of the aforesaid circular has been modified as under: “Equity shares and units of Equity ETFs that are classified as 'Group I security' as per SEBI cir .....

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Inclusion of Equity Exchange Traded Funds as list of eligible securities under Margin Trading Facility - SEBI

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..... raph-18(b) of the aforesaid circular has been modified as under: “While providing the MTF, the stock broker shall ensure that: b). exposure towards stocks and/or units of Equity ETFs purchased under MTF and collateral kept in the form of stocks and/or units of Equity ETFs are well diversified. Stock brokers shall have appropriate Board approved policy in this regard.” 3.4. For the purpose of applicable haircuts for units of Equity ETFs as collateral for MTF, it is clarified that the haircuts applicable to Liquid (Group I) Equity Shares (under “Other Liquid Assets” category) as per SEBI circular MRD/DoP/SE/Cir-07/2005 dated February 23, 2005 shall be applicable to units of Equity ETFs. 3.5. Disclosure Requirement The .....

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Inclusion of Equity Exchange Traded Funds as list of eligible securities under Margin Trading Facility - SEBI

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..... of the member brokers of the stock exchange and also disseminate the circular on the website. 5. Applicability The provisions of this circular shall come into force with effect from 30th day of issuance of this circular. 6. This circular is being issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market. 7. This circular is available on SEBI website at www.sebi.gov.in under the category ‘Circulars’. Yours faithfully, Hruda Ranjan Sahoo Deputy General Manager Tel No.: 022-26449586 E-mail: hrsahoo@sebi.gov.in Annexure 1 Format of the Daily Reporting .....

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Inclusion of Equity Exchange Traded Funds as list of eligible securities under Margin Trading Facility - SEBI

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