TMI BlogCollection and reporting of margins by Trading Member (TM) /Clearing Member (CM) in Cash SegmentX X X X Extracts X X X X X X X X Extracts X X X X ..... SEBI has also put in place a Mechanism for regular monitoring of and penalty for shortcollection/ non-collection of margins from clients in Derivatives segment by issuing the following circulars: 2.1. Circular No. CIR/DNPD/7/2011 dated August 10, 2011 2.2. Circular No. SEBI/HO/CDMRD/DRMP/CIR/P/2016/80 dated September 07, 2016 directed to all National Commodity Derivatives Exchanges, and 2.3. Circular No. CIR/HO/MIRSD/DOP/CIR/P/2019/88 dated August 01, 2019 . 3. Further, SEBI vide circular no. SEBI/HO/MIRSD/DOP/CIR/P/2019/14 dated January 11, 2019 implemented uniform membership structure in Cash segment as Trading Member (TM), Self-clearing Member (SCM), Clearing Member(CM) and Professional Clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s/CMs to collect margin from clients taking into account the practical difficulties often faced by them only for the purpose of levy of penalty and it should not be construed that clients have been allowed 2 days to pay margin due from them.) 4.1.3. As prescribed in clause 7 of SEBI circular MRD/DoP/SE/Cir-07/2005 dated February 23, 2005, the TM/CM shall be exempted from collecting upfront margins from the institutional investors carrying out business transactions and in cases where early pay-in of securities is made by the clients. 4.1.4. If the TM/CM had collected adequate initial margins from the client to cover the potential losses over time till pay-in, he need not collect MTM from the client. 4.1.5. As lik ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e implementation of the provisions of this circular in their monthly development reports. 7. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 and Section 10 of Securities Contract (Regulation) Act, 1956 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 8. This circular is available on SEBI website at www.sebi.gov.in under the categories Legal Framework . Yours faithfully, Rajesh Kumar D General Manager Market Intermediaries Regulation and Supervision Department - Circular - Trade Notice - Public Notice ..... X X X X Extracts X X X X X X X X Extracts X X X X
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